Silver is behaving less like a traditional safe-haven asset and more like a high-beta crypto. Over the weekend, the precious metal delivered extreme price swings that closely resembled Bitcoin-style volatility, catching the attention of both commodities and crypto investors.
Silver surges to record highs amid precious metals rally
Silver prices pushed to fresh all-time highs as the broader precious metals market continued its strong rally. The metal briefly touched nearly $84 on Sunday, marking a historic milestone driven by rising demand and shifting macroeconomic expectations. At the same time, gold also climbed to new peaks, trading around $4,530, reinforcing the bullish sentiment across commodities.
This sharp move came as the broader crypto market struggled to find momentum, highlighting a temporary divergence between digital assets and traditional inflation hedges.
Extreme volatility shocks the silver market
According to markets publication The Kobeissi Letter, silver experienced extraordinary intraday volatility shortly after futures markets opened.
The publication noted that silver prices surged more than 6% to a record $83.75 within minutes, only to reverse sharply. In just over an hour, the price plunged to $75.15, wiping out roughly 10% of its value in a remarkably short time frame. Such rapid swings are more commonly associated with cryptocurrencies than with precious metals.
Why silver is trading like Bitcoin
Silver has always been more volatile than gold, but current conditions are amplifying these moves. One major factor is growing speculation around US monetary policy. With a new Federal Reserve chair expected to replace Jerome Powell in 2026, markets are increasingly pricing in aggressive interest rate cuts under a potentially less hawkish leadership at the Federal Reserve.
Lower interest rates typically reduce bond yields, pushing investors toward alternative assets such as commodities. Silver also benefits from strong industrial demand, as it is widely used in electronics, renewable energy technologies, and manufacturing. Additionally, it plays a role in the so-called debasement trade, where investors seek protection against long-term US dollar weakness and monetary inflation.
Bitcoin remains flat despite macro tailwinds
While silver and gold are surging on rate-cut expectations, Bitcoin has yet to respond in the same way. The crypto market has remained largely range-bound throughout December, with Bitcoin down around 0.5% over the past 30 days and trading near $90,160 at the time of writing, according to CoinGecko.
Despite reaching a record high of $120,000 earlier in October, Bitcoin now needs a notable rebound to close the year in positive territory. For now, silver appears to be stealing the spotlight, delivering the kind of volatility that crypto traders know all too well.
As macro uncertainty, rate expectations, and inflation fears continue to shape global markets, silver’s recent price action suggests that traditional assets can sometimes behave just as wildly as digital ones.
