Silver Plunges 30% in Historic Sell-Off, Bitcoin Shows Strength

• Silver plunged over 30%, hit by CME margin hikes and a stronger U.S. dollar.
• Gold and U.S. stocks also slipped, in what analysts called a forced deleveraging event.
• Bitcoin outperformed metals, rising 10% versus gold and 36% versus silver.

Silver prices collapsed over 30% in a single session, marking their steepest one-day fall since 1980, as aggressive margin hikes and forced liquidations swept through global commodity markets. 

Margin Hikes and Dollar Strength Hit Silver

The plunge followed a strong January rally that had pushed silver prices from around $72 to above $120 per ounce before the sudden reversal. At the time of writing, Silver is trading at $85.18.

A combination of factors contributed to the crash. The CME Group announced sharp increases in margin requirements across precious metals futures, forcing leveraged traders to cut positions. 

At the same time, a stronger U.S. dollar added pressure after President Donald Trump formally nominated Kevin Warsh as the next Federal Reserve chair, a move markets interpreted as potentially more hawkish for monetary policy.

Despite the historic drop, silver was still on track for its ninth consecutive monthly gain, with prices stabilising near $85 early Friday as some investors moved in to buy the dip.

Gold, Stocks Also Shaken

The turmoil was not limited to silver. Gold prices fell sharply from record highs, while U.S. stock markets turned lower before paring some losses later in the session. Analysts described the move as a classic forced deleveraging event, rather than a reaction to a single piece of economic news.

Bitcoin Outperforms Gold and Silver

In contrast, Bitcoin held up better during the turmoil. According to analyst Ash Crypto, Bitcoin was up about 10% against gold and 36% against silver on the day, showing its relative strength as metals collapsed.

Bitcoin was trading near $83,800, up around 1.1% over the past 24 hours, after bouncing between an intraday low of $81,765. 

Friday’s session showed that crypto continues to behave like a risk asset during periods of stress. However, compared with the scale of losses in gold and silver, digital assets absorbed the shock with less damage.

Related: Arthur Hayes Explains Why Dollar Liquidity Decline Is Dragging Bitcoin Lower