Silver sees $2T swing while Bitcoin remains flat

2 min

On January 26, silver experienced extreme trading activity, with its market cap fluctuating by nearly $2 trillion in just 14 hours. Key movements included:

Between 9:00 AM and 1:00 PM ET, silver's market value increased by $500 billion.
From 1:00 PM to 4:30 PM ET, the market cap dropped by $950 billion.
By 10:30 PM ET, it recovered by $500 billion.

This volatility coincided with spot silver prices reaching record highs of $110-$117 per ounce, driven by a weaker US dollar, global tensions, and market stress.

Bitcoin vs. Metals

Bitcoin has been lagging, down about 3% over the past week, remaining below $90,000.
Bitcoin's market cap is currently around $1.76 trillion, down from a previous high of $2.49 trillion.
Historically, gold and silver have offered annual returns of about 10.6%, while silver recently returned only 4.5% before closing the gap.

Eric Balchunas suggests that metals and cryptocurrencies often yield significant returns in short periods, encouraging investor patience.

Market Focus: Super Wednesday

Investors are anticipating U.S. crude oil inventory data and the Federal Reserve’s rate decision on January 28, known as “Super Wednesday.”
WTI crude futures last traded at $60.73 per barrel, with volume at 136,057 contracts and open interest decreasing by 21,771 contracts.
Bitcoin gained 5.08% over the same period, while crude oil rose marginally by 0.01%.

A possible correlation between Bitcoin and oil suggests reduced risk exposure ahead of these events, with the crypto market potentially staying flat until they unfold.