$XAG What we are seeing with silver is a warning sign that we cannot ignore.
What is happening?
Silver has fallen by up to 17% in the last few hours. It is not just a normal drop; it is what Michael Burry calls a collateral death spiral.
How does it affect us?
1. Forced sales: Many traders used their cryptos as collateral to buy metals. As Bitcoin falls, the system forces them to sell their silver to cover debts, which pushes the price down even further.
2. Massive liquidations: On platforms like Hyperliquid, nearly $18 million has been liquidated just in tokenized silver positions.
3. The FED factor: The nomination of Kevin Warsh to the Federal Reserve is strengthening the dollar, which always punishes gold and silver.
Don't fall into the trap of buying every small bounce out of impulse. In a market where liquidations dominate, patience is our best tool to protect our wealth.
Do you think silver has already hit bottom, or would you prefer to wait for the dollar to calm down a bit?
