Today, gold and silver suffered one of their worst trading days in decades. Gold fell about 15% from its record near $5,500 per ounce to around $4,700. Silver crashedToday, gold and silver suffered one of their worst trading days in decades. Gold fell about 15% from its record near $5,500 per ounce to around $4,700. Silver crashed

CZ Defends Bitcoin as Silver Drops 30% in Worst Day Since 1980

2026/01/31 13:54
3 min read

Today, gold and silver suffered one of their worst trading days in decades. Gold fell about 15% from its record near $5,500 per ounce to around $4,700. Silver crashed even harder. It dropped nearly 30% in a single session. This was its worst daily fall since 1980. Trillions of dollars in market value vanished across metals.

The move shocked investors. These assets are known as safe havens. Yet they behaved like risky trades. The selloff followed weeks of fast price gains. It also came after new political and market pressure. Meanwhile, founder of Binance Changpeng Zhao (CZ) reacted to the chaos. He said the crash shows that even old assets can be very volatile. He used the moment to defend Bitcoin’s role in modern markets.

Parabolic Rally Before the Fall

January saw extreme price action. Silver jumped from about $72 to over $120 per ounce in a few weeks. Gold also climbed fast and hit new all time highs above $5,500. Many traders rushed in. They feared inflation and global risk. Others chased quick profits. Leverage built up across futures markets. Retail and hedge funds piled into long positions. Prices looked stretched. Charts showed overbought signals. As a result, the market became fragile. It only needed one strong shock to break.

Triggers: Fed Politics and a Stronger Dollar

The key trigger came from Washington. President Trump named Kevin Warsh as the next Federal Reserve chair. Warsh is seen as very hawkish. Traders expect higher interest rates under his leadership. This pushed the U.S. dollar higher. A stronger dollar hurts gold and silver. These metals do not pay interest. So money moved out of them and into cash and bonds. Profit taking also increased. Many traders locked in gains after the big rally.

Margin Hikes Forced Liquidations

Another blow came from the CME Group. It raised margin requirements on metal futures. Silver margins jumped sharply. Gold margins also increased. This forced traders to add cash or close positions. However, many could not meet the new rules, and so they sold. As a result, these sales caused more losses, which then led to more margin calls. Consequently, the cycle fed on itself. Specifically, silver suffered the most, as it fell from above $120 to around $78 for March futures. This marked its worst day since 1980. Gold also dropped hard. Platinum and palladium followed lower.

CZ Links the Crash to Bitcoin’s Story

After the crash, CZ shared a post calling the event a “Sigma-10 move.” That means it was extremely rare. He said this shows that even assets with thousands of years of history can break down fast. Binance’s founder compared this to Bitcoin’s shorter history. He said crypto markets are still young. Also, they face heavy pressure and fear. But they hold large growth potential. In his words, “we are still early.”

What Comes Next

By early January 31, prices tried to stabilize. Silver traded near $85. Gold held above $4,700. Some traders called it a shakeout. Others feared a bubble had burst. Currently, the crash changes the view of metals. They no longer look calm and steady. Instead, they look speculative and that gives Bitcoin a new talking point in the fight for safe haven status.

The post CZ Defends Bitcoin as Silver Drops 30% in Worst Day Since 1980 appeared first on Coinfomania.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Huawei goes public with chip ambitions, boosting China’s tech autonomy post-Nvidia

Huawei goes public with chip ambitions, boosting China’s tech autonomy post-Nvidia

The post Huawei goes public with chip ambitions, boosting China’s tech autonomy post-Nvidia appeared on BitcoinEthereumNews.com. Huawei publicly revealed its full chip roadmap on Thursday during its annual Connect conference in Shanghai, confirming it would begin releasing some of the world’s most powerful computing systems in a push to reduce China’s reliance on Nvidia and other foreign chipmakers, according to Reuters. Eric Xu, Huawei’s rotating chairman, disclosed that the company had developed its own high-bandwidth memory, a technology previously led by Samsung and SK Hynix. Xu said, “We will follow a 1-year release cycle and double compute with each release,” making it clear Huawei now intends to release next-gen chips and hardware annually with increased processing capabilities. The announcement came just days before U.S. President Donald Trump and Chinese President Xi Jinping are expected to meet on Friday, following trade talks between both countries earlier in the week. The move is widely seen as an attempt by Beijing to project confidence in its tech ecosystem as U.S.-China tensions continue to grow. Huawei releases full schedule for Ascend, Kunpeng chips, and computing clusters Huawei detailed the timeline for its AI chip series Ascend, starting with the 910C, which was released earlier this year. The Ascend 950 will launch in 2026 with two variants. The 960 will follow in 2027, and the 970 is scheduled for 2028. Huawei also confirmed its Kunpeng server chips will receive updates in 2026 and 2028. China’s chip war with the U.S. escalated this week as Nvidia was accused of violating China’s anti-monopoly law, and several large Chinese tech firms were ordered to cancel Nvidia AI chip orders. Financial Times reported that government regulators had also instructed distributors to stop placing new Nvidia orders. One executive in China’s chip distribution industry said his company was told verbally to stop buying Nvidia chips and was only allowed to sell current inventory. That executive declined…
Share
BitcoinEthereumNews2025/09/18 21:20
Tron Makes Bold Moves in TRX Tokens Acquisition

Tron Makes Bold Moves in TRX Tokens Acquisition

Tron's Justin Sun supports TRX's strategic treasury initiative. TRX prices rise, signaling short-term recovery, yet long-term climate is uncertain. Continue Reading
Share
Coinstats2026/02/09 15:28
White House Reopens Stablecoin Talks With Banks and Crypto

White House Reopens Stablecoin Talks With Banks and Crypto

The White House will host another important meeting on Tuesday, February 10, 2026, bringing together major banks and crypto companies. The goal is simple, as officials
Share
Coinfomania2026/02/09 14:53