Market Meltdown: Gold, Silver, S&P 500, and Crypto Plunge as "Extreme Fear" Grips Investors
Major asset classes, including gold, silver, the S&P 500, and cryptocurrencies, are experiencing a synchronized sell-off as of February 13, 2026.
Investor sentiment has plunged into "extreme fear," with the Crypto Fear & Greed Index hitting a multi-year low of 5 out of 100.
The market turmoil is primarily driven by:
AI Sector Volatility: A sharp correction in high-growth AI tech stocks (e.g., Nvidia, Alphabet) has spilled over into other liquid assets like crypto.
Hawkish Fed Expectations: Stronger-than-expected U.S. labor data has dampened hopes for near-term interest rate cuts, pushing Treasury yields higher and pressuring non-yielding assets like gold.
Massive Liquidations: Bitcoin's failure to maintain the $70,000 level triggered over $1 billion in leveraged liquidations, creating a "waterfall" effect across digital markets.
Key Insights
Digital Gold Narrative Fails: Bitcoin is currently moving in lockstep with the Nasdaq during downturns, failing to act as a "safe haven" during this tech-led sell-off.
Precious Metals Hit: Despite their typical hedge status, gold and silver are being sold to cover losses in other sectors (margin calls) and due to a stronger US dollar.
Institutional Exit: Spot Bitcoin ETFs saw massive outflows—over $3 billion in January 2026 alone—indicating a major rotation by institutional advisors toward cash and treasuries.
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