Silver’s sharp price swings echo crypto-style volatility

Silver prices recorded extreme volatility over the weekend, posting rapid gains and losses that market observers compared to cryptocurrency trading patterns.

The precious metal surged to a new all-time high of nearly $84 during US trading hours before reversing sharply.

Within the space of roughly one hour, silver spiked by about 6% before plunging close to 10%.

Market analysts described the moves as unusually violent for a traditional commodity.

The Kobeissi Letter highlighted the episode, noting the speed and scale of the reversal shortly after futures markets opened.

Absolute insanity in silver right now: prices surged to a record high before erasing nearly 10% of their value in just over an hour.

The Kobeissi Letter said.

Gold prices also pushed higher over the weekend, trading near record levels above $4,500 per ounce.

Analysts said the rally in precious metals has been driven by expectations of looser monetary policy.

Markets are increasingly pricing in interest rate cuts as a new US Federal Reserve chair is expected to take office in 2026.

Lower interest rates typically reduce bond yields, encouraging investors to rotate into commodities such as gold and silver.

Silver’s role as an industrial metal has further amplified demand pressures.

The metal is widely used in electronics, renewable energy technologies and manufacturing.

Analysts said silver has become part of the so-called debasement trade tied to long-term concerns over currency dilution.

By contrast, the cryptocurrency market has remained subdued during December.

Bitcoin traded largely flat over the past month despite earlier gains in the year.

After reaching an all-time high above $120,000 in October, Bitcoin has since pulled back.

Market data shows Bitcoin would need a notable rally to finish the year in positive territory.

Observers said silver’s sudden volatility highlights how macro-driven assets can behave more like risk assets under certain conditions.

Analysts warned that elevated price swings could persist as rate expectations and industrial demand continue to shift.

At the time reporting, Bitcoin price was $89,904.03.