Market Meltdown: Gold, Silver, S&P 500, and Crypto Plunge as "Extreme Fear" Grips Investors

Major asset classes, including gold, silver, the S&P 500, and cryptocurrencies, are experiencing a synchronized sell-off as of February 13, 2026.

Investor sentiment has plunged into "extreme fear," with the Crypto Fear & Greed Index hitting a multi-year low of 5 out of 100.

The market turmoil is primarily driven by:

AI Sector Volatility: A sharp correction in high-growth AI tech stocks (e.g., Nvidia, Alphabet) has spilled over into other liquid assets like crypto.

Hawkish Fed Expectations: Stronger-than-expected U.S. labor data has dampened hopes for near-term interest rate cuts, pushing Treasury yields higher and pressuring non-yielding assets like gold.

Massive Liquidations: Bitcoin's failure to maintain the $70,000 level triggered over $1 billion in leveraged liquidations, creating a "waterfall" effect across digital markets.

Key Insights

Digital Gold Narrative Fails: Bitcoin is currently moving in lockstep with the Nasdaq during downturns, failing to act as a "safe haven" during this tech-led sell-off.

Precious Metals Hit: Despite their typical hedge status, gold and silver are being sold to cover losses in other sectors (margin calls) and due to a stronger US dollar.

Institutional Exit: Spot Bitcoin ETFs saw massive outflows—over $3 billion in January 2026 alone—indicating a major rotation by institutional advisors toward cash and treasuries.

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