Spot Silver Prices Plunge by 35% in a Single Day

Spot silver prices dropped below $75 per ounce on January 31, marking a 35.12% daily decline, according to Bitget market data, reaching the lowest point since January 8.

This sharp decline in silver impacts related cryptocurrency markets, with assets like Bitcoin and Ethereum experiencing significant daily reductions. Investors now reassess risk as commodities and digital assets react.

Silver’s Sharp Fall to $75 Spurs Market Anxiety

Spot silver prices recorded a steep descent, falling to under $75 per ounce, the lowest level reached since early January. The decline was registered as a 35.12% drop within the day, reflecting significant negative sentiment in commodity markets. Data from Bitget markets substantiates these figures, highlighting the volatility in precious metals.

The decline impacts Bitcoin and Ethereum, with Bitcoin losing 2.1% and Ethereum 3.4% daily per exchange data from Binance and Bitget. Such shifts suggest a broader market perception changing, as investor sentiment turns cautious amidst commodity price upheavals. Precious metals’ volatility can influence correlated digital assets, drawing attention from traders.

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Market reactions varied, with notable figures like Arthur Hayes of BitMEX foreseeing a potential “macro unwind” in markets, cautioning that high volatility levels in commodities might trigger significant shifts in cryptocurrency valuations. No institutional statements confirmed significant asset movement linked directly to silver’s volatility.

Analysts Warn of Broader Effects on Crypto and Commodities

Did you know? Silver’s plunge marks one of the steepest daily declines in commodities since March 2020, when BTC and ETH also saw massive drops.

According to CoinMarketCap, Bitcoin’s current price is $83,980.25, with a market cap of 1.678 trillion dollars, showing a 0.34% price drop in the last 24 hours. Its trading volume remains high at 72.668 billion dollars over the same period, indicating sustained activity in the market despite recent volatility.

The Coincu research team highlights potential financial shifts, anticipating that sustained price movements in the silver market could lead to reduced investor confidence in both traditional commodities and digital assets, causing ripple effects across markets. Such trends might provoke regulatory scrutiny and market adjustments, according to crypto bear market analyses.