The US dollar surges, posting the largest gain in nearly half a year! Gold and silver plummet in a "cliff-like" crash, bloodbath in the precious metals market, Bitcoin rebounds and breaks through $84,000.

Precious metals markets suffer a bloodbath: gold and silver prices simultaneously experience epic crashes, with market voices questioning whether the bull market for gold and silver has ended. Meanwhile, cryptocurrencies see a short-term rebound, with Bitcoin once breaking through $84,000.
(Background recap: Epic crash! Silver plunges 35% below $75, gold drops 12% and falls below $4,700, analysts say the precious metals feast is over)
(Additional background: Gold and silver collapse together! Silver crashes 20% in one day, gold drops 8%, is the bull market in precious metals coming to an end?)

Table of Contents

• Strong dollar ends a weak January trend
• Gold plunges nearly 10%, a rare decline in decades
• Silver’s epic crash, single-day drop hits record high
• Wosh nomination effect intensifies, hawkish expectations heat up
• Bitcoin rebounds and breaks through $84,000
• Total network liquidation hits $591 million, silver liquidations reach $147 million

The international financial markets once again experienced a night of terror. As the dollar rebounds strongly, gold and silver prices simultaneously undergo an epic crash. The market generally attributes this wave of volatility to U.S. President Trump announcing the nomination of former Fed Governor Kevin Warsh as the next Federal Reserve Chair. Due to Warsh’s hawkish stance in the past, the market quickly anticipates a hawkish shift in Fed policies, triggering intense market turmoil.

Strong dollar ends a weak January trend

The dollar index (DXY) surged significantly that day, rising about 0.9% in a single day, marking the largest single-day gain since July 2025, reversing the weak trend since January.

Gold plunges nearly 10%, a rare decline in decades

Under the pressure of a strengthening dollar, the precious metals market experienced fierce selling. Gold prices once tumbled over 10% intraday, reaching a low of about $4,679, one of the largest single-day declines since 1983, nearly erasing all recent gains.

However, after the close, gold prices slightly recovered to $4,895, narrowing the decline to about 8.8%.

Analysts point out that as a non-yielding asset, gold is highly sensitive to real interest rate changes. When the market begins to reprice the Fed’s monetary policy stance, investors quickly take profits and cut losses, exacerbating the decline.

Silver’s epic crash, record single-day drop

Compared to gold, silver’s decline was even more severe. The largest intraday drop reached 35%, with a low of about $73.3, and after closing, it still fell about 26%, to $85.1, setting a record for the largest single-day decline in history.

Silver previously surged to a historic high of $121.64, but this flash crash wiped out a large portion of investors’ paper profits, highlighting the extreme volatility risk associated with high leverage and speculative funds during a market retreat.

Wosh nomination effect intensifies, hawkish expectations heat up

The market generally believes that the immediate trigger for this crash was Kevin Warsh’s nomination as the next Fed Chair. Warsh is known for emphasizing inflation control and opposing excessive easing policies, seen as a typical hawk. He advocates that when necessary, even if interest rates are cut, balance sheet reduction (quantitative tightening) should proceed simultaneously. This stance reinforced expectations of a stronger dollar and rising real interest rates.

Bitcoin rebounds and breaks through $84,000

However, unlike the grim situation in precious metals, Bitcoin experienced a slight rebound during the gold and silver decline, reaching a high of over $84,000 last night, at $84,600. Currently, it has slightly pulled back to $83,870, up 1.2% in the past 24 hours.

Total network liquidations hit $591 million, silver liquidations reach $147 million

According to Coinglass data, in the past 24 hours, 137,478 traders in the crypto market were liquidated, with total liquidation amounting to $591 million. Among them, long positions were liquidated for $445 million, and short positions for $145 million.

Notably, the largest liquidation was in Ethereum ($154 million), followed by silver ($147 million).