Gold, silver, copper profit-taking triggers $120 million unwind in tokenized metals

A significant drop in the prices of gold, silver, and copper on traditional markets, including a nearly 4% fall in LME three-month copper futures, triggered substantial losses in their blockchain-linked counterparts. Across crypto exchanges, derivatives and spot-style products tied to these metals saw approximately $120 million in combined liquidations over 24 hours, with silver-linked contracts leading at $32 million in losses. This event highlights the increasing use of crypto venues for executing macro trades, where traders use crypto-native contracts for speed and leverage when metals rally, and these markets then act as a 'release valve' when prices correct. The broader pullback in metals was exacerbated by a strengthening U.S. dollar amid speculation about a potential new Federal Reserve chair nominee, which typically pressures commodities priced in dollars. Despite the setback, metals remain a strong theme for the year, and crypto markets are increasingly serving as a parallel venue for these global macro bets.

(Source：CoinDesk)