$1.28 Trillion Wiped Out From Gold and Silver in Hours, Crypto Holds Steady

• Gold and silver dropped sharply, wiping out $1.28 trillion in hours.
• Rising bond yields and liquidity tightening triggered heavy selling pressure.
• The crypto market held relatively steady near $2.35 trillion capitalization levels.

Global financial markets witnessed an intense shock as precious metals suddenly plunged, erasing roughly $1.28 trillion in combined market value within just a few hours. Gold dropped 2.83%, wiping out nearly $1 trillion, while silver fell 5.21%, losing approximately $280 billion in market capitalization.

The sharp selloff came during a period of tightening liquidity, rising bond yields, and growing uncertainty around global macroeconomic policy, factors that are now reshaping capital flows across asset classes.

Why Gold and Silver Suddenly Fell

Several macro forces appear to be driving the rapid decline:

Liquidity tightening: Global markets are facing tighter financial conditions due to quantitative tightening, higher real interest rates, and a stronger U.S. dollar. When liquidity contracts, even traditional safe-haven assets such as gold can come under pressure as investors sell positions to raise cash.

Bond market stress: Large-scale government debt issuance and weak demand for long-term bonds are pushing yields higher. Rising yields increase the opportunity cost of holding non-yielding assets like gold and silver, leading to capital rotation.

Policy uncertainty: Delayed expectations for interest-rate cuts and ongoing fiscal uncertainties, including government funding concerns, are increasing volatility across commodities and equities.

Repricing of “safe haven” demand: Safe-haven assets often struggle when markets rapidly shift toward cash preservation. Instead of rotating into metals, investors may temporarily move into dollars or short-term instruments, triggering sudden metal selloffs.

Crypto Market Shows Relative Stability

While precious metals experienced sharp declines, the cryptocurrency market remained comparatively stable, holding near a $2.35 trillion total market capitalization with only marginal daily changes. Major assets such as Bitcoin traded around $68,000, while Ethereum hovered near $1,980 at press time, showing limited short-term volatility compared with metals.

However, Bitcoin ETFs have recorded four consecutive weeks of net outflows, totaling more than $3.4 billion. At the same time, long-term Bitcoin holders have slowed their dip-buying activity, a behavior historically associated with extended consolidation phases.

If Bitcoin maintains support near the $67,000 range, analysts expect a potential short-term relief bounce. However, a breakdown below key technical levels could push prices toward the $60,000 region, where stronger long-term demand may re-emerge.

Related: Bitcoin Experiences Harshest Q1 Since 2018 With 22% Loss