Crypto Traders Face Liquidations as Silver’s Rally Collapses
Crypto traders pivoted to precious metals in search of stability, only to face another wave of liquidations as silver's price abruptly reversed. The metal, which had surged 20% in January, crashed from $120 to $101 per ounce, catching both traditional and on-chain markets off guard.
Tokenized silver markets, newly expanded via Hyperliquid's HIP-3 protocol, became a focal point for the sell-off. The asset had briefly dethroned gold as crypto traders' preferred hedge against altcoin volatility—until its dramatic downturn exposed the risks of even 'safe haven' plays.
Liquidation clusters emerged on recently deployed trading pairs, underscoring how quickly crypto-native derivatives can amplify traditional asset volatility. The episode mirrors previous boom-bust cycles in crypto markets, where Leveraged positions turn minor corrections into cascading margin calls.
