| Token Icon | Coin | Current Price | 24H High | 24H Low | Volatility |
|---|---|---|---|---|---|
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Bitcoin | $95,394.7 | $95,825.50 | $95,005.10 | -0.18% |
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Ethereum | $3,295.80 | $3,325.03 | $3,274.36 | -0.66% |
After weeks of parabolic gains and record-breaking highs, the global precious metals market faced severe volatility this Friday (January 16). Spot silver prices suffered a sharp sell-off, breaking through psychological support levels to touch a daily low of $89.00 per ounce, marking a significant intraday decline of 3.66%.
Sentiment in the futures market was even more bearish. Silver futures for March delivery on the New York Mercantile Exchange (COMEX) plunged 4.00%, trading at $88.63 per ounce, indicating that short-term momentum has firmly shifted to the bears.
Three Key Drivers Behind the Plunge
Market analysts suggest that today's "flash crash" in silver was not accidental, but rather the result of a convergence of negative factors:
1. "Sell the News" Event on Tariffs Previously, prices had been bid up to a historic high of $93.56 on fears that the U.S. might impose strict new tariffs on critical minerals. However, supply chain panic evaporated earlier today when the U.S. government announced it would not impose import tariffs on critical minerals for the time being. Speculative capital that had bet on supply shortages exited rapidly, triggering a cascade of sell orders.
2. Strong U.S. Economic Data Dampens Rate Cut Hopes The latest U.S. Initial Jobless Claims came in lower than expected (198,000), signaling a labor market that remains resilient. This data has reduced the likelihood of an immediate interest rate cut by the Federal Reserve. A "higher-for-longer" interest rate environment increases the opportunity cost of holding non-yielding assets like precious metals, adding pressure to silver prices.
3. The U.S. Dollar Rebounds Buoyed by the robust economic data, the U.S. Dollar Index (DXY) rebounded above the 99.30 level today. A stronger dollar makes dollar-denominated commodities more expensive for overseas buyers, further suppressing demand.
Market Outlook
Despite today's deep retracement, silver's performance in 2026 remains impressive, with Year-to-Date (YTD) gains still exceeding 10%.
Leading commodity analysts noted: "This is a classic bull market correction. After a staggering 150% rally in 2025, the market needs to shake out weak hands. In the short term, investors should watch the $86-$88 support zone. If prices stabilize here, the uptrend may resume; if support fails, we could see a deeper washout."
