Gold and silver markets suffered an unprecedented collapse as about $7 trillion evaporated in 48 hours. Bitcoin fell roughly 7%, yet its decline was relatively modest amid the rout. While Bitcoin and altcoins were largely flat, gold slumped about 8% and silver fell more than 25%. Gold prices slid from $5,600 to $4,700 per ounce, and silver from $121 to $77.
Analysts attribute the slide to President Donald Trump’s nomination of Kevin Warsh as Fed chair. Warsh is a hawk who prioritizes inflation containment and supports a stronger dollar. As a result, speculative trading in gold and silver was rapidly unwound, triggering large-scale selling. Attention is now turning to Bitcoin, with some noting that liquidity pulled from gold and silver could flow into crypto.
Gold and silver prices cratered in a rare two-day move, with about $7 trillion evaporating from the markets in 48 hours. Bitcoin fell roughly 7%, yet was seen as relatively steadier amid the rout. Gold dropped from $5,600 to $4,700 per ounce, while silver slid from $121 to $77 per ounce.
Analysts attribute the slide to the nomination of Kevin Warsh as Fed chair, a hawkish stance viewed as supportive of dollar strength. The prospect of tighter policy triggered rapid unwinding of speculative positions in gold and silver, fueling large-scale selling. Industry commentators noted liquidity has tightened, amplifying the move.
Attention shifts to Bitcoin, as some expect liquidity to flow from precious metals into crypto markets. If liquidity remains tight after Warsh’s nomination, Bitcoin could face further declines; others suggest the crypto market could diverge from traditional assets. In any case, this episode signals a broader shift in global liquidity rather than a simple market correction.
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