Silver Prices Dropped by 35%, Causing Shock Effects in Crypto Liquidation.

Silver Derivatives Lead in the Crypto Market

In the last 24 hours, tokenized silver futures have caused approximately $142 million in losses, primarily affecting liquidations in the crypto market. This situation outpaced Bitcoin and Ethereum. The decline in silver-backed crypto products accelerated with the overall sell-off in commodity prices.

Sharp Turn in Silver Prices and Hedge Funds

The sharp drop in silver prices has quickly led hedge funds to reduce their optimistic forecasts for silver. Additionally, CME Group’s increase in margin requirements for silver and gold futures by up to 50% has further deepened the volatility in the market.

This situation indicates that crypto trading areas are increasingly becoming macro trading platforms. Traders are using tokenized instruments to express their views on commodities rather than on major digital assets like Bitcoin and Ethereum.