Gold and Silver Erased $7 Trillion From Global Markets, Will Bitcoin Follow?
Gold and silver markets saw a massive $7 trillion liquidation, while Bitcoin showed surprising resilience amid the sell-off.Summary
A major liquidation event wiped out approximately $7 trillion from the combined market capitalization of gold and silver over 48 hours, an amount roughly four times Bitcoin's entire market cap. While gold dropped over 8% and silver plummeted over 25%, Bitcoin only fell 7% and remained relatively stable near $82,000.
Market observers attributed the precious metals sell-off to President Donald Trump's nomination of Kevin Warsh to replace Jerome Powell as Federal Reserve chairman. Warsh is viewed as an inflation hawk favoring tighter monetary policy, which triggered a violent unwinding of leveraged bets that had anticipated aggressive rate cuts.
Experts suggest the gold market was overheated and due for a correction, with Cathie Wood noting that the current bubble might be in gold, not AI. The key question for Bitcoin is whether its stability signals a decoupling from commodities or a delayed reaction. Some analysts believe capital may rotate from the metals trade into digital assets like Bitcoin, given its scarcity, but sustained global liquidity tightening resulting from the policy shift could still pressure cryptocurrencies.
(Source：BeInCrypto)