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Silver Dives 30% to $83 While Gold Falls 10% to $4,700 Amid Margin Hikes

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21Shares Introduces JitoSOL ETP to Offer Staking Rewards via Solana

TLDR:

  • Gold dropped nearly 10% and silver 30% as margin hikes forced leveraged liquidations. 
  • Kevin Warsh’s nomination strengthened the US dollar, pressuring metals prices sharply. 
  • Silver rebounded 8% after intraday lows, showing oversold conditions correcting. 
  • Market reset removed weak positions, offering opportunities for disciplined investors. 

 

Gold and silver continue to face sharp volatility. Gold is around $4,665 per ounce, and silver is near $79–$82 per ounce. After facing historic sell‑offs and forced liquidations, both metals remain well below recent record highs. 

The market is responding to heightened margin requirements and a stronger US dollar. Partial rebounds signal oversold conditions that are attracting renewed buying interest. 

Historic Volatility and Margin-Driven Liquidations

Gold and silver experienced extreme price swings, with gold reaching $5,600 and silver $122 before sharply falling. By Monday, gold traded near $4,700, while silver briefly touched $71 intraday, before bouncing into the $83–87 range.

The immediate catalyst was political: Kevin Warsh’s nomination as Federal Reserve Chair signaled tighter monetary policy. Warsh’s hawkish stance strengthened the US dollar, which increased costs for international buyers of precious metals.

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Since gold and silver are priced in dollars, the stronger currency immediately suppressed demand, pressuring prices further. However, the main driver was structural leverage in futures markets amplified by abrupt margin increases.

CME Group raised margin requirements 33% for gold and 36% for silver, forcing traders to either provide capital or liquidate positions. Margin allows traders to control large positions with limited capital, but sudden hikes create urgent selling pressure.

Most leveraged traders could not meet requirements, sparking a cascade of forced selling and rapid price declines. Initial liquidations triggered margin calls for other traders, accelerating panic selling in the metals market.


Stop-loss orders were executed automatically, liquidity quickly vanished, and prices gapped lower than any routine correction. Silver dropped nearly 30% intraday, while gold fell close to 10%, showing how leverage amplified volatility far beyond fundamentals.

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Recovery and Market Stabilization

By Monday afternoon, silver rebounded roughly 8%, and gold partially recovered, signaling oversold conditions correcting. Buyers returned once forced selling subsided, stabilizing prices and creating a firmer market foundation.

This rebound suggests weaker traders were removed, leaving stronger hands and more controlled trading dynamics. Fundamental factors supporting precious metals remain unchanged, including geopolitical tensions and currency concerns.

Institutional forecasts remain bullish, with gold projected to reach $6,300 by the end of 2026 according to major banks. The volatility event created buying opportunities for patient investors willing to enter markets at lower prices.

Higher margin requirements now reduce the likelihood of repeat forced liquidations in futures markets. This event effectively purged over-leveraged positions, resetting the market on a more stable footing.

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Precious metals markets are gradually stabilizing, offering long-term confidence for disciplined investors watching for entry points.

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ME Token Slumps After Magic Eden Announces Buybacks, Staking Rewards

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ME Token Slumps After Magic Eden Announces Buybacks, Staking Rewards


The former NFT marketplace said it will allocate revenue to the ME ecosystem, including USDC rewards paid out to stakers.

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Solana (SOL) Plunges Below $100, Bitcoin (BTC) Recovers From 15-Month Low: Market Watch

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BTCUSD Feb 4. Source: TradingView


Meanwhile, HASH and HYPE have declined the most over the past 24 hours after charting impressive gains lately.

Bitcoin’s adverse price actions as of late worsened yesterday when the asset tumbled to its lowest positions since early November 2024 at $73,000 before recovering by a few grand.

Most altcoins followed suit with enhanced volatility, but some, such as SOL, HYPE, and CC, have been hit harder than others.

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BTC’s Latest Rollercoaster

It was just a week ago when the primary cryptocurrency challenged the $90,000 resistance ahead of the first FOMC meeting for the year. After it became official that the Fed won’t cut the rates again, BTC remained sluggish at first but started to decline in the following hours.

The escalating tension in the Middle East was also blamed for another crash that took place on Thursday when bitcoin plunged to $81,000. It bounced off to $84,000 on Friday but tumbled once again on Saturday, this time to under $75,000. Another recovery attempt followed on Monday, only to be rejected at $79,000.

Tuesday brought the latest crash, this time to a 15-month low of $73,000. It has rebounded since then to just over $76,000, but it’s still 3% down on the day. Moreover, it has lost 14% of its value weekly and a whopping 18% monthly.

Its market capitalization has plummeted to $1.525 trillion on CG, while its dominance over the alts has declined to 57.3%.

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BTCUSD Feb 4. Source: TradingView
BTCUSD Feb 4. Source: TradingView

SOL Below $100

Most larger-cap altcoins have felt the consequences of the violent market crash lately. Ethereum went from over $3,000 to $2,100 in the span of a week, before bouncing to $2,280 as of now. BNB is down to $760, while SOL has plummeted to under $100 after a 7% daily decline.

Even the recent high-flyer HYPE has retraced hard daily. The token is down by 11% to $33. CC and ZEC are also deep in the red, while XMR has gained the most from the larger caps.

The cumulative market cap of all crypto assets has seen more than $70 billion erased in a day and is down to $2.65 trillion on CG.

Cryptocurrency Market Overview Feb 4. Source: QuantifyCrypto
Cryptocurrency Market Overview Feb 4. Source: QuantifyCrypto

 

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Pumpfun Unveils Investment Arm and $3 Million Hackathon

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Pumpfun Unveils Investment Arm and $3 Million Hackathon


PUMP rallied as much as 10% but erased its gains as crypto markets dipped.

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Spot Bitcoin ETF AUM Hits Lowest Level Since April 2025

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Spot Bitcoin ETF AUM Hits Lowest Level Since April 2025

Assets in spot Bitcoin (BTC) ETFs slipped below $100 billion on Tuesday following a fresh $272 million in outflows.

According to data from SoSoValue, the move marked the first time spot Bitcoin ETF assets under management have fallen below that level since April 2025, after peaking at about $168 billion in October

The drop came amid a broader crypto market sell-off, with Bitcoin sliding below $74,000 on Tuesday. The global cryptocurrency market capitalization fell from $3.11 trillion to $2.64 trillion over the past week, according to CoinGecko.

Altcoin funds secure modest inflows

The latest outflows from spot Bitcoin ETFs followed a brief rebound in flows on Monday, when the products attracted $562 million in net inflows.

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Still, Bitcoin funds resumed losses on Tuesday, pushing year-to-date outflows to almost $1.3 billion, coming in line with ongoing market volatility.

Spot Bitcoin ETF flows since Jan. 26, 2026. Source: SoSoValue

By contrast, ETFs tracking altcoins such as Ether (ETH), XRP (XRP) and Solana (SOL) recorded modest inflows of $14 million, $19.6 million and $1.2 million, respectively.

Is institutional adoption moving beyond ETFs?

The ongoing sell-off in Bitcoin ETFs comes as BTC trades below the ETF creation cost basis of $84,000, suggesting new ETF shares are being issued at a loss and placing pressure on fund flows.

Market observers say that the slump is unlikely to trigger further mass sell-offs in ETFs.

“My guess is vast majority of assets in spot BTC ETFs stay put regardless,” ETF analyst Nate Geraci wrote on X on Monday.

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Source: Nate Geraci

Thomas Restout, CEO of institutional liquidity provider B2C2, echoed the sentiment, noting that institutional ETF investors are generally resilient. Still, he hinted that a shift toward onchain trading may be underway.

Related: VistaShares launches Treasury ETF with options-based Bitcoin exposure

“The benefit of institutions coming in and buying ETFs is they’re far more resilient. They will sit on their views and positions for longer,” Restout said in a Rulematch Spot On podcast on Monday.

“I think the next level of transformation is institutions actually trading crypto, rather than just using securitized ETFs. We’re expecting the next wave of institutions to be the ones trading the underlying assets directly,” he noted.