Silver's 35% plunge ends up beating bitcoin in a rare crypto liquidation shock

Tokenized silver futures experienced the largest liquidations across crypto markets in the past 24 hours, overtaking Bitcoin and Ether in a rare event where commodities-based crypto futures were hit hardest by a metals pullback. Total liquidations reached $543.9 million, with silver-linked products accounting for roughly $142 million, compared to Bitcoin's $82 million. This unusual shift highlights how crypto venues are increasingly used as alternative macro trading rails for expressing views on traditional assets like metals. The pressure on silver followed an extraordinary rally, leading hedge funds to cut bullish positions to a 23-month low. Furthermore, CME Group increased margin requirements on gold and silver futures, which tends to amplify short-term price swings by forcing leveraged traders to exit positions. The largest single liquidation involved an $18.1 million leveraged XYZ:SILVER-USD position on Hyperliquid.

(Source：CoinDesk)