{"id":63051,"date":"2026-02-05T11:06:49","date_gmt":"2026-02-05T08:06:49","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=63051"},"modified":"2026-02-05T11:06:49","modified_gmt":"2026-02-05T08:06:49","slug":"why-is-silver-falling-sharply","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/why-is-silver-falling-sharply\/","title":{"rendered":"Why Is Silver Falling Sharply?"},"content":{"rendered":"<p data-start=\"947\" data-end=\"1324\"><strong>Silver<\/strong> prices suffered a brutal selloff over the past 24 hours, plunging by as much as 17%. The wave of selling, fueled by thin liquidity and heavy leverage, dragged not only silver but also gold and copper lower. A strengthening dollar triggered liquidations across leveraged metal positions, while weakening crypto collateral intensified selling pressure in tokenized silver.<\/p>\n<p data-start=\"1326\" data-end=\"1427\">The familiar dynamic is back: falling crypto collateral is forcing metals into mandatory liquidation.<\/p>\n<p data-start=\"1429\" data-end=\"1564\">Hedge fund manager Michael Burry\u2019s warning earlier this week about a \u201ccollateral-driven feedback loop\u201d is now playing out in real time.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/why-is-silver-falling-sharply\/#Forced_Liquidations_on_Hyperliquid_Accelerate_the_Selloff\" title=\"Forced Liquidations on Hyperliquid Accelerate the Selloff\">Forced Liquidations on Hyperliquid Accelerate the Selloff<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/why-is-silver-falling-sharply\/#%E2%80%9CCrypto_Falls_Metals_Get_Sold%E2%80%9D\" title=\"\u201cCrypto Falls, Metals Get Sold\u201d\">\u201cCrypto Falls, Metals Get Sold\u201d<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coinengineer.net\/blog\/why-is-silver-falling-sharply\/#Spot_Prices_Reveal_the_Scale_of_the_Selloff\" title=\"Spot Prices Reveal the Scale of the Selloff\">Spot Prices Reveal the Scale of the Selloff<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/coinengineer.net\/blog\/why-is-silver-falling-sharply\/#Positioning_Overtakes_Macro_Forces\" title=\"Positioning Overtakes Macro Forces\">Positioning Overtakes Macro Forces<\/a><\/li><\/ul><\/nav><\/div>\n<h2 data-start=\"1571\" data-end=\"1631\"><span class=\"ez-toc-section\" id=\"Forced_Liquidations_on_Hyperliquid_Accelerate_the_Selloff\"><\/span>Forced Liquidations on Hyperliquid Accelerate the Selloff<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"1633\" data-end=\"1815\">Pressure in tokenized silver concentrated heavily on Hyperliquid. Roughly $17.75 million in XYZ:SILVER positions were forcibly closed, with $16.82 million coming from long positions.<\/p>\n<p data-start=\"1817\" data-end=\"2014\">The data highlights how leverage magnifies price moves. As silver slid, margin calls kicked in. Liquidations triggered fresh selling. On-chain metrics show the unwind hit metals harder than crypto.<\/p>\n<p data-start=\"2016\" data-end=\"2150\">A two-day rebound was completely erased, and silver still struggles to establish a durable bottom after last week\u2019s historic collapse.<\/p>\n<h2 data-start=\"2157\" data-end=\"2191\"><span class=\"ez-toc-section\" id=\"%E2%80%9CCrypto_Falls_Metals_Get_Sold%E2%80%9D\"><\/span>\u201cCrypto Falls, Metals Get Sold\u201d<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"2193\" data-end=\"2441\">Burry described the mechanism in simple but devastating terms: when crypto assets lose value, collateral gaps emerge. Traders are then forced to close profitable metal positions to cover margins. He labeled this process a \u201ccollateral death spiral.\u201d<\/p>\n<p data-start=\"2443\" data-end=\"2641\">He specifically warned that bitcoin losses could push institutions to liquidate tokenized silver and other metal exposure. Recent price action suggests that scenario has already moved beyond theory.<\/p>\n<p data-start=\"2643\" data-end=\"2793\">Market participants say the drop fits a recurring pattern: investors chase short-term rebounds, then rapidly unwind positions once volatility returns.<\/p>\n<h2 data-start=\"2800\" data-end=\"2846\"><span class=\"ez-toc-section\" id=\"Spot_Prices_Reveal_the_Scale_of_the_Selloff\"><\/span>Spot Prices Reveal the Scale of the Selloff<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"2848\" data-end=\"2970\">Spot <a href=\"https:\/\/coinengineer.net\/blog\/gold-and-silver-rebound-after-sharp-sell-off\/\"><strong>gold<\/strong><\/a> traded around $4,838.81 per ounce, down 2.5% on the day, retreating sharply from an early-session one-week high.<\/p>\n<p data-start=\"2972\" data-end=\"3145\">Silver fell far harder. The metal dropped 14.9% to $74.94 per ounce. After hitting a record $121.64 last week, the reversal intensified the unwinding of leveraged positions.<\/p>\n<h2 data-start=\"3152\" data-end=\"3189\"><span class=\"ez-toc-section\" id=\"Positioning_Overtakes_Macro_Forces\"><\/span>Positioning Overtakes Macro Forces<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"3191\" data-end=\"3466\">Under normal conditions, markets would focus on the dollar hitting a two-week high and signs of easing US\u2013China trade tensions. Indeed, gold and silver sank sharply during Thursday\u2019s broader market selloff. But this time, positioning and forced selling dominate price action.<\/p>\n<p data-start=\"3468\" data-end=\"3686\">While investors digest the potential policy implications of Kevin Warsh\u2019s Fed nomination and President Donald Trump pushes back against a more hawkish Federal Reserve, these headlines have had limited impact on metals.<\/p>\n<p data-start=\"3688\" data-end=\"3817\">The real pressure comes not from \u201cclean\u201d macro buying that fueled last month\u2019s rally, but from leveraged positions being unwound.<\/p>\n<p data-start=\"3819\" data-end=\"3946\">Some traders warn liquidation leaderboards could briefly flip, with metal products suffering deeper losses than bitcoin itself.<\/p>\n<p data-start=\"3948\" data-end=\"4110\">Markets are searching for balance rather than direction. But as long as crypto collateral remains fragile, vulnerability in tokenized metals is likely to persist.<\/p>\n<p data-start=\"3948\" data-end=\"4110\"><em>You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0<a href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"noreferrer noopener\">Telegram,<\/a>\u00a0<a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"noreferrer noopener\">YouTube<\/a>\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/coinengineers\">Twitter<\/a>\u00a0channels for the latest news and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Silver prices suffered a brutal selloff over the past 24 hours, plunging by as much as 17%. The wave of selling, fueled by thin liquidity and heavy leverage, dragged not only silver but also gold and copper lower. A strengthening dollar triggered liquidations across leveraged metal positions, while weakening crypto collateral intensified selling pressure in<\/p>\n","protected":false},"author":36,"featured_media":58137,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,2],"tags":[27669,27670,27671,27667,27552,27668],"class_list":["post-63051","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy-news","category-news","tag-gold-silver-drop","tag-hyperliquid-liquidation","tag-michael-burry-warning","tag-silver-price-crash","tag-tokenized-silver","tag-why-silver-is-falling"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why Is Silver Falling Sharply? - Coin Engineer<\/title>\n<meta name=\"description\" content=\"Silver plunged up to 17% as dollar strength, leverage liquidations crypto collateral stress triggered forced selling across tokenized metals.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/why-is-silver-falling-sharply\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Is Silver Falling Sharply? 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