Silver prices plummet over 17%! Precious metals and Bitcoin fall together, accelerating global market capital rotation

Silver experienced a sharp decline in the early hours of Thursday, with spot prices plunging over 17% at one point, then rebounding to around $80 per ounce. Despite the recovery, it still closed the day down about 9%. This rapid retreat not only erased the gains from the previous two days but also continued the high volatility seen after last Friday’s 36% plunge. Just a few days ago, silver surged to a historic high above $121 per ounce, but now it has undergone a swift reversal, indicating a clear shift in market sentiment.

Meanwhile, gold was also not spared, falling back to around $4,934 per ounce and dropping below the $5,000 level again. The US dollar index rose to a two-week high, which is considered a key factor suppressing precious metals. ING commodities strategist Ewa Manthey pointed out that the inverse relationship between the dollar and precious metals has re-emerged, making gold and silver prices particularly sensitive to exchange rate fluctuations. In the short term, prices are likely to continue fluctuating with the dollar.

Analysts warn that the silver market is much smaller than gold, making it more prone to sharp swings. Even before this round of declines, hedge funds and managed funds had begun reducing their long positions in silver and other metals, shifting some capital into energy and other commodities, which intensified the price pullback.

Market tension is not limited to precious metals. Risk assets are broadly under pressure, with tech stocks and cryptocurrencies declining in tandem. Due to rapid advancements in artificial intelligence technology, some software companies faced sell-offs, and the downward trend spread across the entire tech sector. Louis Navellier of Navellier & Associates stated that the competitive pressure and job displacement risks brought by AI are changing investors’ valuation logic for the software industry.

In Asian markets, Samsung Electronics and SoftBank Group shares fell approximately 6% and 7%, respectively. In the cryptocurrency space, Bitcoin dropped to about $71,200, down roughly 7% in 24 hours, with nearly a 19% decline over the past week. The simultaneous weakness across multiple assets indicates that funds are reallocating, suggesting the global markets may be entering a new phase of structural rotation.