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iShares Silver Trust (SLV) peaked at $71.12 per share on December 26 before dropping 11% to $73 per ounce.
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Silver surged over 160% in 2025 from $29 to a high of $84 per ounce before retreating.
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Silver faces a structural deficit of 115M to 120M ounces in 2025 as industrial demand exceeds mine production.
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In 2025, silver surged to record highs, topping $80 per ounce and briefly reaching $84 before retreating. Starting the year around $29 per ounce, the metal has delivered gains of over 160%, outperforming gold, stocks, and most asset classes.
This rally has drawn parallels to Bitcoin (CRYPTO:BTC), which earlier surged past $126,000 amid predictions of $200,000 or more, fueling a buying frenzy. However, Bitcoin suffered a flash crash on Oct. 10, triggered by leverage deleveraging and broader market stress, leading to over $19 billion in liquidations and a more than 30% drop from highs.
Silver followed a similar path, with traders eyeing momentum to carry it past $100 per ounce. The iShares Silver Trust (NYSEARCA:SLV), the largest silver ETF, closed at a high of $71.12 per share on Dec 26 while silver peaked at $83.62 — just before profit-taking and margin hikes sent it down over 11% to around $73 per ounce this morning. Investors now question if silver will mirror Bitcoin’s plunge.
Bitcoin’s flash crash stemmed from high leverage in a thin market, amplified by political shocks like tariff threats that created a risk-off environment. Over $19 billion in positions were liquidated in hours, driven by overleveraged traders and whale panic-selling near highs. Unlike prior cycles with retail dominance, 2025 saw institutional participation, yet its correlation with equities strengthened, exposing crypto to broader risk-off moves.
Bitcoin could face further downside if macroeconomic pressures persist, such as delayed rate cuts or trade tensions rising again. Its value relies heavily on sentiment and adoption expectations, lacking the tangible utility backing other assets and even other cryptocurrencies. While long-term potential exists from institutional and potential government interest, short-term volatility remains high without any physical demand to anchor it.
Silver’s recent 11% drop echoes Bitcoin’s volatility, raising fears of a deeper correction. Profit-taking after record highs, margin hikes on the Comex Metals Exchange (CME), and year-end positioning contributed to the pullback. However, silver’s fundamentals differ markedly from Bitcoin’s speculative base.
