Silver Flash Crash: Margin Calls Wipe Billions! 💥
The silver market (XAG) just plummeted 13% in a single day, crashing from $83 to $73. 📉 This massive de-leveraging event erased billions in paper profits. The catalyst? The Chicago Mercantile Exchange (CME) drastically increased margin requirements to $25,000 per contract, squeezing leveraged positions. 💸
This margin hike triggered forced liquidations of long positions. A cascade of stop-loss orders ignited a powerful sell-off once $80 broke. This isn’t a sign of fundamental weakness in silver, but a necessary deleveraging. Physical silver supply remains constrained while financial markets readjust. 🔥
Expect continued volatility as the market resets. Key support to watch: $70. Traders should also monitor potential spillover effects into crypto. Assets like $ZEC, $OPEN, and $GMT could feel pressure as “safe haven” sentiment cools. Weak hands have been shaken out, and smart money is eyeing accumulation opportunities at these levels. 🛡️
#Silver #XAG #MarketCrash #Deleverage 🚀
