A macroanalyst using the pseudonym NoLimit cited the reason for the silver price collapse in the manner of a Bitcoin value dump.
On December 29th, over 16 hours, the precious metal depreciated by 16% after reaching a price peak at the $84 mark. Such a potent bearish trend caused experts to compare XAG with BTC, for whose market such fluctuations are routine. Drawing a parallel between the assets, specialists suggested the downward trend was triggered by the mass selling of silver by private investors.
XAG Price Decline
However, NoLimit holds a different perspective. According to the analyst, a major institutional participant in the XAG market could not sustain an open leveraged position, and the algorithm automatically closed it to hedge risks. At that moment, liquidity in the market was low, so the position’s liquidation caused a sharp drop in silver’s value.
Rumor suggests this participant was a systemically important American bank trading in the XAG futures market. To stabilize the banking system’s operation, the US federal government supposedly was compelled to urgently issue $34 billion to financial institutions through REPO transactions.
Nevertheless, in the long term, silver will appreciate because the demand for the precious metal exceeds the supply. Businessman and author Robert Kiyosaki predicts XAG’s rate will climb to $200 in 2026, partly due to export restrictions on the precious metal taking effect in China on January 1st.
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