Precious metals plummet overnight: How does liquidity exhaustion trigger price fluctuations?

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【BitPush】Last week’s strong performance of silver attracted a lot of attention. Rumors of short squeezes and margin chasing triggered a final wave of buying on Friday, but this enthusiasm quickly dissipated. What is the current situation? Silver prices plummeted over $7 in a single day, setting a nominal decline record. Gold isn’t doing much better, with intraday drops approaching 4%, also under pressure from profit-taking.

Interestingly, the precious metals market is now entirely driven by sentiment. Analysts point out that the trading environment has been quite challenging lately — overall market liquidity has severely shrunk. What happens when liquidity is insufficient? Price volatility gets amplified infinitely — even small trades can create big ripples. Hedge funds are now simply avoiding the market, unwilling to get caught in such excessive fluctuations. Market makers are also pulling back, clearly reducing their participation. This is the true picture of an era of low liquidity.

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GhostWalletSleuthvip
· 7h ago
Liquidity dries up, and it's a bloodbath in minutes.
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SolidityJestervip
· 7h ago
Liquidity dries up and that's it. Market makers have really run away, it's truly over.
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SchrodingersFOMOvip
· 7h ago
Liquidity dries up and that's it, no one is stepping in to buy.
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WagmiWarriorvip
· 7h ago
I'm tired of the rhetoric about liquidity exhaustion. Basically, it just means no one is willing to take the other side.
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