Silver's Sharp Plunge: Bitcoin-Style Flash Crash or Healthy Pullback Before $100?
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Silver's Sharp Plunge: Bitcoin-Style Flash Crash or Healthy Pullback Before $100?
"In 2025, silver surged to record highs, topping $80 per ounce and briefly reaching $84 before retreating. Starting the year around $29 per ounce, the metal has delivered gains of over 160%, outperforming gold, stocks, and most asset classes. This rally has drawn parallels to Bitcoin ( ), which earlier surged past $126,000 amid predictions of $200,000 or more, fueling a buying frenzy."
"Bitcoin's flash crash stemmed from high leverage in a thin market, amplified by political shocks like tariff threats that created a risk-off environment. Over $19 billion in positions were liquidated in hours, driven by overleveraged traders and whale panic-selling near highs. Unlike prior cycles with retail dominance, 2025 saw institutional participation, yet its correlation with equities strengthened, exposing crypto to broader risk-off moves."
"Bitcoin could face further downside if macroeconomic pressures persist, such as delayed rate cuts or trade tensions rising again. Its value relies heavily on sentiment and adoption expectations, lacking the tangible utility backing other assets and even other cryptocurrencies. While long-term potential exists from institutional and potential government interest, short-term volatility remains high without any physical demand to anchor it."
Silver climbed from about $29 per ounce to record highs above $80 in 2025, briefly touching $84 before retreating, delivering gains exceeding 160% and outperforming most asset classes. The rally drew comparisons to Bitcoin, which earlier soared past $126,000 and then experienced a flash crash on Oct. 10 that triggered over $19 billion in liquidations amid leverage deleveraging and market stress. High leverage, thin markets, political shocks, profit-taking, and margin hikes contributed to rapid declines. The iShares Silver Trust reached intraday highs as silver peaked near $83.62 before an 11% drop toward about $73, signaling elevated volatility and downside risk.
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