Yeliz Akmaca 
A sharp pullback in gold, silver, and copper prices rattled not only commodity markets but also a specific corner of the crypto ecosystem. Roughly $120 million in liquidations across blockchain-based tokenized metal products highlighted how global macro volatility is spilling over into crypto markets.
After testing record highs earlier in the week, copper retreated sharply as technical disruptions at the London Metal Exchange (LME) coincided with position shifts by Chinese traders. Three-month copper contracts fell nearly 4% from above $14,500 per ton to around $13,000. Over the same period, gold declined about 4%, while silver dropped 5.9%.
Metal Sell-Off Spills Into Crypto
The correction in traditional markets quickly reverberated across crypto, particularly in tokenized gold, silver, and copper products. Over the past 24 hours, positions tied to these assets across spot and derivatives markets saw close to $120 million in liquidations.
Silver-linked contracts accounted for the largest losses at roughly $32 million, followed by gold- and copper-based futures. Prices of tokenized bullion products such as XAU and XAUT fell by more than 7%.
This episode underscores that crypto markets are no longer just a standalone asset class, but increasingly serve as an alternative venue for macro trading.
Crypto as a New Channel for Macro Trades
As metal prices surged earlier in the week, traders gravitated toward crypto-based contracts, drawn by 24/7 access, leverage, and faster execution. When prices reversed, those same markets became a pressure valve for risk.
Gold’s pullback went beyond a routine technical correction. Spot gold slid to around $5,170 after intraday losses exceeded 5%, coming just one day after prices hit an all-time high of $5,594.82. Futures markets mirrored the move, with U.S. February contracts falling to $5,225, as selling pressure also spread to tokenized metal positions in crypto markets.
The post-record correction was even more pronounced in silver. After breaking above $122 on Thursday, prices retreated to around $112 amid heavy selling. Still, silver continues to stand out with gains of more than 50% on a monthly basis.
Platinum followed a similar pattern, easing toward the $2,530 area after topping $2,900 earlier in the week at a record high.
Altogether, the move reinforced how tightly linked crypto markets have become with traditional finance.
Stronger Dollar Adds Pressure
A stronger U.S. dollar also played a key role in the metals pullback. Speculation that the Trump administration may be preparing to nominate Kevin Warsh as the next Federal Reserve chair boosted the greenback. Dollar strength tends to weigh on dollar-denominated commodities, and Friday’s move pressured metals broadly.
Beyond gold and silver, crude oil and iron ore prices also moved lower in this environment.
Bigger Picture: Metals Still a Leading Theme
Despite the sharp short-term correction, metals remain one of the strongest themes of the year. Copper continues to benefit from supply constraints and electrification-driven demand, keeping weekly momentum intact. Gold, meanwhile, continues to attract investor interest as a hedge against political and fiscal uncertainty.
Bitcoin, however, told a different story. BTC traded relatively independently despite the turbulence in metals, reinforcing the view that it is increasingly behaving as a standalone risk asset rather than a macro proxy.
Crypto markets may no longer be detached from global trends—but they are increasingly acting as a parallel arena where macro forces play out in real time.
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