Silver's 17% Drop Caused Market Volatility

The Sharp Decline in Silver and Market Reactions

Silver has experienced a sharp decline of 17% within the last 24 hours, erasing its recent recovery. This situation has also led to a decrease in the prices of gold and copper. The drop gained momentum due to thin liquidity and heavy speculative positions.

Tokenized silver markets faced significant forced liquidations. During this process, approximately $16.82 million worth of long positions were liquidated on the Hyperliquid platform. This situation once again highlighted how leveraged trading amplified the sell-off.

Hedge fund manager Michael Burry warned of a "collateral death spiral" where falling crypto collateral triggered sales in tokenized metals. Currently, market positions and forced liquidations have surpassed macroeconomic factors such as changes in the Federal Reserve's expectations.