Market volatility is fueled by geopolitical factors and Federal Reserve decisions.
Since the 1980s, silver and gold have witnessed unprecedented surges, but now they are experiencing dramatic declines. Silver faces significant losses, plunging over 34% daily, while Bitcoin eyes $81,000, and gold suffers double-digit losses.
ContentsSilver and Gold CollapseChina’s Silver Export RestrictionsBitcoin (BTC)Silver and Gold Collapse
Silver tumbled to $75, crashing from its peak at $117. Compared to most altcoins, silver has incurred more daily losses, seemingly ending its magnificent upward trend. If silver falls below $70, it might test the $56 level. Gold, on the other hand, dropped from $5,400 to $4,750, marking a 12% decrease, with $4,550 serving as a notable support level.
The market’s bearish signals intensified when US President Trump chose Kevin Warsh, known for his hawkish views, as the Federal Reserve (Fed) chairman nominee. While the dollar remains relatively strong, the swift ascent of these assets has led to profit-taking, marking the end of their continuous, steep upward climbs.
Is this the end of the trend? Global uncertainty may persist as long as Trump remains in office. However, the new Fed chairman might have spooked commodity investors more than anticipated. Even if the trend hasn’t ended, reaching $5,000 for gold and over $100 for silver might not be easy targets, at least in the medium term.
China’s Silver Export Restrictions
China’s restrictions and political pressures have long impacted silver’s pricing. However, as of January 1, China implemented silver export limitations, weakening their support. Silver has been elevated to the status of “strategic raw material.” Only companies with a special export license from the Chinese Ministry of Commerce can now sell silver. For 2026-2027, only 44 companies received export permissions, with stringent requirements like producing at least 80 tons of silver annually and having a credit limit exceeding $30 million. These solid criteria squeezed out small and medium exporters.
Bitcoin (BTC)
If the new Fed Chairman heeds Trump’s advice and lowers rates, Fed’s independence might be in question. If rates are not reduced, Trump might resort to criticism, as he previously stated that a Fed Chairman unwilling to cut rates shouldn’t hold the position. The focus could shift towards structural issues within the Fed soon.
The new Chairman’s stance against QE could signify a continued delay in monetary expansion.
Meanwhile, ongoing tensions with Iran, Trump’s antics, and concerns about the new Fed leader have impacted the markets. Fresh documents on Epstein and Trump might signal upcoming significant events. We may soon uncover what lies ahead in the coming weeks.
For BTC, the crucial point is $80,600. Dropping below this level could confirm a shift towards a bearish trend.
Crypto investors suffered losses from new commodity futures across platforms. Liquidations in XAG futures neared $12 million, and similar figures are seen in XAUT and XAU futures. These are just the past hour’s losses, with over $35 million in silver liquidations over the last 24 hours.
Hyperliquid, with $96 million in recent liquidations, surpassed Binance, taking the top spot.
Tip: Following massive liquidations, Hyperliquid’s token HYPE surpassed $31 despite BTC’s decline. If open commodity positions dwindle, HYPE buyers may sell due to reduced protocol revenue.
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