A sudden drop of $7 in one day: the silver "short squeeze feast" abruptly ends, with volatility lurking amid liquidity exhaustion

Last week, silver became the market focus with an astonishing surge – the rumored "short squeeze battle" and margin call turmoil drove prices upwards. However, the frenzy did not last long, and as market sentiment quickly cooled, silver recorded the largest nominal single-day drop in history yesterday, plummeting over $7 during the day.

Synchronously, gold also faced significant profit-taking, dropping about 4% during the day. Analysts warn that the current precious metals market has entered a typical "emotion-driven" mode, where price fluctuations are often severe and difficult to predict.

What is even more concerning is that market liquidity is shrinking. We are currently in a sensitive trading environment, with overall market participation relatively low, leading to extreme amplifications in price movements. Hedge funds are reluctant to hedge against risks counter to the trend, and market makers are also cutting back on positions – in this lack of buffering market structure, any minor disturbance could trigger a new round of significant volatility.

From "short squeeze carnival" to a single-day drop, the silver trend once again proves: in a market with exhausted liquidity, sentiment can shift instantly, and volatility never truly leaves. $BTC $ETH $SOL #Ripple拟建10亿美元XRP储备