News author: Crypto Emergency

Over the last 48 hours, global precious metal markets have experienced one of the largest declines in history. Massive liquidation of positions has led to a depreciation of gold and silver by about $7 trillion, which has shocked investors.

Against this background, Bitcoin has only declined by 7%, demonstrating relative resilience amid the global sell-off.

Historical fall of metals: the scale is shocking
Analyst Joe Consorti noted that the decline in the total capitalization of gold and silver was four times greater than the entire market value of bitcoin.

According to Santiment:

• gold fell more than 8%,
• silver - more than 25%,
• bitcoin and altcoins remained in a sideways range.

Gold quotes collapsed from the historical maximum of $5600 to $4700 per ounce. Silver plummeted from $121 to $77 - volatility uncharacteristic for the traditionally stable metal market.

Political factor: the appointment of Kevin Warsh changed the game rules
The main trigger for the decline was news from the USA. President Donald Trump nominated Kevin Warsh to head the Fed instead of Jerome Powell.

Why this matters:

• Warsh is known as a supporter of tight monetary policy.
• His position contradicts expectations of rate cuts and a weaker dollar.
• Traders who bet on 'devaluation trading' found themselves trapped.

Many market participants opened positions with high leverage, hoping for the new administration's soft policy. But Warsh's appointment signaled a reversal, triggering a cascade of liquidations.

Bob Coleman, CEO of Idaho Armored Vaults, noted that 'hot money' chased metal growth, but is now forced to close margin positions en masse.

Experts warned of overheating
Some analysts had previously pointed to the risk of a bubble. Ark Invest founder Cathie Wood stated that 'the bubble is not in AI now, but in gold.'

In her opinion, the strengthening of the dollar could lead to a prolonged decline in prices - similar to the period from 1980 to 2000.

How bitcoin reacts: resilience or calm before the storm
Bitcoin holds around $82 000, which may indicate a partial decoupling from commodity markets.
Reasons for resilience:

• BTC did not participate in the final phase of 'metallic euphoria',
• it has less speculative leverage,
• the supply of bitcoin is limited and not dependent on industrial demand.

Some analysts believe that capital may flow into digital assets as liquidity leaves the overheated metals market.

However, risks remain:

• if Warsh's policy leads to a global liquidity contraction,
• pressure on all risky assets, including cryptocurrencies, may increase.

Conclusion
The collapse of gold and silver was the result of a combination of political factors, an overheated market, and mass margin liquidations. Against this backdrop, bitcoin showed relative resilience, but further dynamics will depend on the Fed's policy and global liquidity.

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