This is the result of a rare phenomenon that financiers call a 'liquidity crisis' or 'flash crash'.
The situation is unique in that everything fell at once: both risky assets BTC, ETH, SOL and safe havens (Gold $PAXG , $XAU Silver $XAG ). Let's consider the main reasons why this is happening right now:
1. Effect of "Margin Call" (Cascading collapse)
This is the main reason for synchronization. The market had too many "leverage" (borrowed funds).
📌 When Bitcoin did not hold the level of $90,000 and began to fall, traders started losing their margins.
📌To prevent the complete liquidation of their accounts, large funds began urgently selling what was profitable for them — namely Gold and Silver.
📌📉 Thus, the fall in one sector "pulled" another due to the necessity to urgently obtain cash (USDT/USD).
2. Historical correction of metals
Today, gold and silver updated incredible records ($5,600 and $120 respectively).
📌💰 After such a surge (silver rose by 50% in a month), there were simply no buyers left in the market willing to buy even more expensive.
📌✅ As soon as the price dipped slightly, algorithms triggered sales. In just the last 60 minutes, about $4 trillion in market capitalization "evaporated" from the metals market. This was a technical "break" due to market overheating.
3. Macroeconomic shock from the Fed and Trump
📌🏛️ The US Fed. Yesterday's decision to keep the rate unchanged and hints that there will be no more cuts hit Bitcoin, which is very sensitive to the value of money.
📌🚀 Geopolitics. New threats of Trump's trade wars against the EU and China, as well as tensions surrounding Iran, forced investors to move into "cash" (clean dollar), rather than into assets. Even gold momentarily ceased to be safe due to such wild volatility.
4. Technical factor ("No Bid")
On Bitcoin charts, the RSI fell to 7-10 units. This is a state when buyers simply disappeared from the market for a few minutes (the order book was empty), and the price plummeted down to the nearest buy orders deep below.
What's next?
The market is currently in a state of "shock". Historically, such vertical drops often end with a rapid "rebound" (V-shaped recovery, which metals are trying to show), as assets become very cheap for long-term investors.
So we are waiting for new investors, new movement, and some stability in volatility 👇
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