If you stayed awake last night, chances are you witnessed one of the most extreme trading sessions modern financial markets have ever seen. In less than seven hours, roughly $5.5 trillion in value swung violently across global assets. Gold, silver, U.S. equities, and crypto collapsed almost simultaneously. Yet when the dust settled and traditional markets found their footing, crypto stood alone-still sinking, still under pressure.

Gold’s Most Violent Session on Record

Around 9:30 PM Vietnam time, gold prices suddenly unraveled. In just 55 minutes, the global gold market lost an estimated $3.2 trillion in capitalization. Prices plunged from nearly $5,600/oz to below $5,100/oz, an intraday drop of about 8.7%-a move that would have been unthinkable only months ago.

Silver fared even worse. After touching a record high above $121/oz, it collapsed to nearly $107/oz, marking a brutal 12.5% decline in the same window.

From roughly 10:25 PM through 4:00 AM, precious metals staged a partial recovery. Even so, the total daily swing across gold and silver reached approximately $5.5 trillion, nearly three times the entire market capitalization of Bitcoin.

What makes this episode truly historic is context. Gold’s volatility now exceeds levels seen during the 2008 global financial crisis. Starting 2025 near $2,600/oz, gold had surged to almost $5,600/oz before this shock-up more than 115% in just over a year. The rally was extraordinary, and the correction proved equally dramatic.

U.S. Stocks Stumble Under the Weight of Big Tech

U.S. equities were quickly pulled into the storm. Early in the session, the Nasdaq dropped more than 2%, while the S&P 500 slid close to 1% as fear spilled over from commodities into stocks. As traders realized there was no single catastrophic headline driving the sell-off, equities began to stabilize alongside gold’s rebound.

By the close, losses were mostly contained. The Nasdaq finished down 0.72%, the S&P 500 slipped 0.13%, and the Dow Jones managed a modest 0.11% gain.

Earnings from Big Tech, however, added fuel to the fire. Microsoft plunged more than 10% after reporting slower-than-expected cloud growth and higher capital expenditures. It marked the company’s worst trading day since March 2020. The sell-off rippled through the software sector, as investors questioned whether rapid advances in AI could disrupt traditional SaaS business models.

One notable exception was Meta, which surged over 9% after beating expectations with nearly $60 billion in Q4 revenue. CEO Mark Zuckerberg also announced plans to invest up to $135 billion in AI this year, reinforcing confidence in the company’s long-term strategy.

Crypto: The Only Market That Didn’t Bounce

While gold, silver, and equities managed to claw back losses, crypto continued its descent.

Bitcoin plunged to an intraday low of $81,184, its weakest level since November 2025. More critically, Bitcoin broke below its 100-week moving average near $85,000, a level that had repeatedly acted as a safety net over the past year. Once that support failed, leveraged stop-loss orders were triggered en masse, accelerating the decline.

Ethereum dropped nearly 8% to below $2,750, while Solana slid more than 7%. The entire crypto market turned deep red.

In the past 24 hours alone, approximately $1.74 billion in leveraged positions were liquidated, with long positions accounting for $1.64 billion of that total. Capital flowed out of crypto and into precious metals, where investors perceived greater safety amid mounting geopolitical risks.

Despite the “digital gold” narrative, last night reinforced a hard truth: crypto has yet to earn full trust as a crisis hedge.

Why Did Everything Break at Once?

No single headline explains the chaos. Many analysts see this as a structural reset after an extended period of complacency.

Markets had grown stretched. The S&P 500 hovered near the psychologically heavy 7,000-point resistance, while gold and silver had rallied almost vertically in the days prior. When assets are that overheated, even a small catalyst can trigger a cascade. Profit-taking in gold turned into forced selling, margin calls followed, and the liquidation spiral spread from commodities to equities and finally to crypto.

At the same time, geopolitical tensions intensified, amplifying uncertainty.

Washington, Trade, and Rising Global Tensions

Former President Donald Trump signed an executive order threatening secondary tariffs on any country selling oil to Cuba, a move widely seen as targeting Mexico, Russia, and other suppliers. He also announced a proposed 50% tariff on Canadian aircraft, escalating trade friction with one of America’s closest allies.

Tensions with Iran added another layer of risk. Reports indicated heightened U.S. naval activity in the region, prompting fears of potential military escalation. Iranian officials responded by warning that U.S. bases were within range and threatened to close the Strait of Hormuz if attacked. Oil futures jumped more than 4% on the day.

The Fed, Powell, and a Looming Power Shift

The Federal Reserve held interest rates steady at 3.5%–3.75%, as expected. Chair Jerome Powell signaled that rate cuts were unlikely before mid-year without clear signs of economic weakness.

Trump reacted swiftly, publicly criticizing Powell and demanding immediate cuts totaling three percentage points, which would push rates below 1%. He also announced that a new Fed Chair nominee would be revealed soon. Betting markets, including Polymarket, priced the odds of Kevin Warsh taking the role at over 85%. Warsh, a former Fed governor with strong Wall Street credibility, is widely viewed as more independent and market-friendly.

A Rare Piece of Good News

Amid the turmoil, Washington delivered one small relief. Trump and Democratic leaders reached a budget agreement, narrowly avoiding a U.S. government shutdown through September. Funding for the Department of Homeland Security was extended for two weeks while negotiations continue, with a Senate vote expected imminently.

What This Night Tells Us About Markets

When fear takes over, capital still runs toward gold and silver, not Bitcoin. Last night was a stark reminder that, despite its long-term promise, crypto has not yet secured its place as a true safe haven.

The coming days will be critical. The choice of the next Fed Chair, the future path of U.S. interest rates, and escalating tensions with Iran all have the potential to move markets again-perhaps violently. For now, one thing is clear: this was not just another volatile session. It was a defining moment that exposed where trust truly lies when uncertainty peaks.

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