Smart Money Flocks to Gold and Hyperscalers as Crypto Winter Continues

The crypto winter continues to drag on, with capital leaking out of digital assets and flowing into other markets. According to BeInCryptos tracking, this capital is landing in commodities and stocks. One key asset that smart money is buying is gold (XAU), which has been slowly clawing back toward $4,000 after a 28% correction.

Gold's price has been affected by the hawkish backdrop following the June Federal Reserve meeting, but a pause in the dollar's rally gave bullion room to stabilize. The gold-silver ratio has climbed from about 52 on May 13 to near 69, indicating that investors may be leaning into the harder safe-haven metal.

Large speculators, including hedge funds, are net long 180,220 COMEX gold contracts as of June 16, according to the Commitments of Traders (COT) report. This could hint at early positioning by smart money. Alphabet (GOOGL), a hyperscaler in the AI space, is also seeing quiet accumulation into a pullback.

Smart money appears to have started buying Alphabet during its quality dip rather than chasing a top. The Smart Money Index (SMI) and Chaikin Money Flow (CMF) indicators are turning up, indicating net buying by smart money. Berkshire Hathaway, run by Warren Buffett, has also lifted its Class A stake in Alphabet by around 200%.

Silver (XAG), the cheaper, higher-beta cousin of gold, is also seeing early positioning by smart money. The non-commercial traders are net long silver contracts, and they increased their bets. Silver demand gives it a reason, as it runs through solar panels, electric vehicles, data centers, and power grids.