Metals have been quietly doing what crypto used to do best.
They’ve been moving first.
Gold and silver already made strong runs, and those trades paid well.
Now attention is shifting further down the curve.
Just like altcoins in crypto, some metals lag at first.
Then they explode when momentum finally hits.
That’s how copper feels to me right now.
In many ways, it’s the XRP of metals.
So let’s take a closer look at what’s driving copper, why demand keeps rising, and how I’m approaching the trade.
Why copper demand keeps accelerating
Copper sits at the center of modern growth.
Energy, data, transport, and infrastructure all depend on it.
AI and data centers
Artificial intelligence isn’t just software.
It’s physical infrastructure.
AI data centers require far more power and cooling than traditional cloud setups.
That means more wiring, more transformers, and more copper.
As AI capacity expands globally, copper demand scales with it.
Electrification and green energy
Electric vehicles use significantly more copper than combustion cars.
Wind farms, solar parks, and grid upgrades rely heavily on copper wiring.
This isn’t optional demand.
It’s structural.
Governments and corporations are locked into long-term electrification plans, and copper sits right at the core.
Infrastructure and China’s role
Global infrastructure spending remains strong.
Power grids, 5G networks, construction, and industrial upgrades all pull copper forward.
China continues to invest aggressively in green tech and energy security.
That includes stockpiling raw materials.
When China builds, copper feels it.
Supply is not keeping up
Demand alone doesn’t create explosive price action.
Supply constraints do.
Mining disruptions and declining ore quality
Major copper-producing regions have faced disruptions.
Operational issues, accidents, and regulatory pressure have limited output.
At the same time, ore grades are declining.
Mines need to process more material just to extract the same amount of copper.
That pushes costs higher and caps supply growth.
New projects won’t help short term
New copper mines take years to develop.
Permits, financing, and construction timelines are slow.
Even if investment ramps up today, supply relief doesn’t arrive soon.
That mismatch matters.
Speculation, tariffs, and stockpiling add fuel
Copper isn’t just moving on fundamentals.
Market structure is amplifying the move.
U.S. and Chinese companies have been stockpiling copper amid trade uncertainty.
Proposed tariffs accelerated buying as firms rushed to secure supply.
At the same time, a weaker U.S. dollar has supported industrial metals broadly.
All of this tightens available inventory.
Copper hits record highs as momentum builds
Copper recently printed a new all-time high on the London Metal Exchange, trading above $13,300 per ton before pulling back.
After gaining over 40% last year, copper is already up around 6% early in 2026.
This is not a sleepy commodity anymore.
It’s in momentum mode.
Even large institutions are acknowledging the longer-term setup.
Goldman Sachs has projected much higher copper prices over the next decade due to structural demand and supply constraints, while still warning about short-term volatility.
That’s the kind of environment where price discovery happens.
Solar industry quietly adds another demand layer
Here’s an underappreciated angle.
Silver prices have exploded.
Up nearly 200% year over year.
That’s forcing the solar industry to adapt.
Chinese manufacturers like LONGi Green Energy and others are actively shifting toward copper-based solutions to reduce costs.
Copper isn’t as conductive as silver, but it’s cheaper, more abundant, and supported by a deeper supply chain.
This substitution trend could extend beyond solar.
Other industries facing high input costs may follow.
That creates incremental demand most models didn’t price in yet.
What’s happening inside the copper market itself
Recent price action hasn’t been smooth.
It’s been violent.
Backwardation has appeared in LME contracts, meaning spot prices are trading above future prices.
That usually signals immediate physical demand and tight supply.
Inventory dynamics also shifted.
After months of extreme tariff-driven distortions, copper stock movements suggest markets may be normalizing, but availability remains tight outside the U.S.
Large traders now control significant portions of near-dated supply.
That adds stress to shorts and fuels volatility.
This is not a balanced market.
Why copper prices look “low” on trading platforms
One thing that confuses many traders.
News headlines quote copper in tons.
Most CFD platforms quote copper in pounds.
That’s why you’ll see copper trading around $5.7 on charts.
It’s the same market.
Just different units.
1 metric ton equals about 2,204 pounds.
Once you convert, the numbers line up.
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My trade and positioning
Last week, I shared that I was buying the silver dip at $72.
Today, my sell order hit at $96.
That’s a 33% swing trade.
GG if you followed it.
Now I’m rotating those profits.
I’m rolling into copper at $5.78.
This is a higher-risk trade.
I’m betting on price discovery and momentum continuation.
Macro factors are heavy right now.
In that environment, I’d rather hold exposure to real assets than chase memecoins.
At the moment, my metals exposure is gold and copper.
Silver is off the table for now.
I’ll re-enter silver if the chart offers a clean setup again.
Final words
Copper is no longer just an industrial input.
It’s a macro signal.
Demand is structural.
Supply is constrained.
And speculative pressure is real.
Like altcoins in crypto cycles, copper spent years being ignored.
Now it’s waking up.
I’m not married to the trade.
I’ll stay in metals until macro tells me otherwise.
For now, copper has my attention.
If you enjoyed this blog, check out our thoughts on Bitcoin’s most recent pullback.
As always, don’t forget to claim your bonus below on Bybit. See you next time!
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