SmallestMouseInTheHole

Silver markets went wild shortly after futures opened.

Around 6:20 PM ET yesterday, silver spiked to a record high near $83.75, jumping roughly 6% in just minutes. The move was fast and aggressive, catching many traders off guard.

But the rally didn’t last.

By 7:30 PM ET, silver had fallen to about $75.15, wiping out nearly 10% of its value in just over an hour. The chart shows a sharp reversal, with heavy selling kicking in almost immediately after the peak.

This kind of move usually points to thin liquidity and leveraged positions getting unwound. When price moves too far, too fast, it doesn’t take much selling to flip momentum. Once stops start getting hit, the drop feeds on itself.

After the sell-off, silver tried to stabilize, but it stayed well below the highs. Traders clearly shifted into damage-control mode rather than chasing another push higher.

Source: X/@KobeissiLetter

While silver was swinging violently, crypto was doing the opposite.

Bitcoin Pushes Higher as Leverage Flows Back Into Crypto

As silver collapsed, Bitcoin climbed toward $90,000, pulling the broader crypto market higher with it.

One of the main drivers was activity in derivatives markets. Open interest jumped 6.85% to around $765 billion, showing that traders are putting fresh capital to work. Most of that growth came from perpetual contracts.

Funding rates also flipped positive, sitting near +0.0059%. That’s a sign traders are leaning long and willing to pay to hold those positions.

Liquidation data adds another layer. Over the last 24 hours, about 94% of liquidations were shorts. As those positions were forced to close, buying pressure increased, helping push prices higher. This kind of short squeeze often fuels momentum moves, especially when volatility is already elevated.

The Binance ecosystem also played a role. Binance-related assets led market gains, rising roughly 2.44%. Social posts showing profitable Binance Futures trades and renewed chatter from CZ helped draw attention back to the platform.

With Binance still accounting for over 35% of Bitcoin’s trading volume, price action there tends to raipple through the entire market.

Read also: Cardano Founder Predicts the Bitcoin Price in 2026 as Crypto Enters a “Privacy” Era

Two Markets, Two Very Different Reactions

The contrast between silver and crypto was hard to miss.

Silver saw a classic blow-off move followed by a fast reset. Crypto, meanwhile, benefited from rising leverage and forced short covering. In one market, traders rushed to reduce risk. In the other, they leaned into it.

For now, both moves tell the same story. Volatility is back, positioning matters, and markets are reacting fast. And if this is how the week starts, it may not be a calm one.

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The post Silver Hits Record High, Then Crashes 10% as Bitcoin Leads Crypto Higher appeared first on CaptainAltcoin.