Silver’s recent price action shows the volatility of Bitcoin
Silver prices continued to hit new highs amid strong metal market gains, with the asset trading at high volatility over the weekend in a very crypto-like fashion.
Silver hit a new all-time high near $84 on Sunday, while demand for gold pushed prices to a new high of $4,530. Meanwhile, the crypto market continues to stutter.
According to a post on Sunday by market publication Kobeisi Letter, silver has seen significant volatility over the weekend, rising 6% and dropping 10% in an hour.
“Absolute Silver Madness Now: At 6:20 PM ET in Ethiopia, 20 minutes after the futures opened, the price of silver rose to a record high of $83.75, up +6%.
Silver is exchanged like BTC.
While precious metals like silver and gold are generally considered to have stable prices, silver is the more volatile of the two.
In the year A new U.S. Federal Reserve chairman, who will take over from Jerome Powell in 2026, is expected to be less hawkish and a major interest rate cut associated with President Trump.
Lower rates mean lower returns from investments in bonds, so investors are more likely to pile into commodities like gold and silver.
Related: Bitcoin doesn't need gold and silver to ‘diminish', say analysts
At the same time, demand for silver is used by industry to produce a variety of products, and is part of the “doomsday trade,” which refers to the erosion of long-term confidence in the dollar due to monetary inflation.
Bitcoin is yet to be collected.
While silver and gold are pushing in part on the back of expected price cuts, Bitcoin (BTC) and the crypto market were flat in December, with BTC down 0.5% over the past 30 days, sitting at $90,160 at the time of writing, according to CoinGecko data.
It's been a tough year overall and despite a rally to its ATH of $120,000 in early October, BTC now needs a 6.5% pump to close the year in the green.
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