Silver prices have surged to record levels, displaying extreme volatility more commonly associated with cryptocurrency markets.
The metal reached a new all-time high of nearly $84 on Sunday amid a broader boom in precious metals.
Gold also climbed sharply, trading around $4,530 as investor demand intensified.
Meanwhile, the crypto market struggled to gain momentum.
Extreme Moves Shake the Silver Market
Market observers highlighted unusually violent price swings over the weekend.
According to a post by The Kobeissi Letter, silver spiked and crashed within a very short time frame.
“Absolute insanity in silver right now: At 6:20 PM ET, just 20 minutes after futures opened, silver prices surged to a record high of $83.75, up +6%.”
“By 7:30 PM ET, silver prices fell to a low of $75.15, erasing -10% of its value in 70 minutes.”
The rapid moves drew comparisons to Bitcoin-style volatility.
Why Silver Is Acting Differently From Gold
While both gold and silver are traditionally viewed as stable stores of value, silver is historically more volatile.
Its smaller market size and heavier industrial usage make it more sensitive to shifts in sentiment and demand.
Expectations around US monetary policy are also playing a role.
A new Federal Reserve chair is set to replace Jerome Powell in 2026.
Investors anticipate a less hawkish stance and deeper interest rate cuts under a Trump-aligned leadership.
Rate Cuts Fuel the Precious Metals Rally
Lower interest rates tend to reduce yields on bonds and fixed-income assets.
As returns fall, investors often rotate into commodities such as gold and silver.
Silver also benefits from strong industrial demand across electronics, solar panels, and manufacturing.
It is increasingly viewed as part of the so-called “debasement trade.”
This theme reflects concerns over long-term confidence in the US dollar due to sustained monetary expansion.
Bitcoin and Crypto Lag Behind
While precious metals have surged, Bitcoin has failed to follow the same trajectory.
The crypto market remained largely flat throughout December.
Bitcoin was down roughly 0.5% over the past 30 days, trading around $90,160 at the time of writing.
Despite reaching an all-time high of $120,000 in early October, momentum has since faded.
Bitcoin would need a gain of approximately 6.5% to end the year in positive territory.
The divergence highlights shifting investor preferences in a changing macroeconomic landscape.
