2025-12-29 17:25:35

Last night, the market experienced a wave of intense volatility. Spot silver plummeted over 8.7% to around $72, and gold also declined by more than 4%. Silver, which had been on an upward trajectory and nearly gained 200% this year, is now undergoing a particularly fierce correction.

What is behind all this? Ultimately, it comes down to the rapid reversal of expectations regarding Federal Reserve policies.

The market is experiencing serious disagreements. Bulls insist that rate cuts will come sooner or later, and the magnitude will be even larger. The focus has shifted to the next Federal Reserve chairperson. Two candidates from the Trump camp are gaining popularity, both publicly supporting rate cuts. Trump himself has also clearly stated who he would prefer to hold the position. Based on these political signals, the market anticipates a potentially more aggressive rate-cutting cycle in the second half of next year.

But there are equally sharp warnings. Management at US banks has openly stated that if the Federal Reserve loses its independence, the market will punish all participants. They remind investors that a low-interest-rate environment may not be beneficial for the US economy.

More forward-looking observations suggest that by 2026, due to sticky inflation and strong economic resilience, the Federal Reserve may not cut rates throughout the entire year, and interest rates will remain at current levels.

On one side is the political desire for rate cuts; on the other side are cautious warnings from financial institutions. The cryptocurrency and precious metals markets are oscillating back and forth amid this tug-of-war. The sharp fluctuations in gold and silver prices may just be the beginning of this battle of expectations.

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ZkSnarker

· 22h ago

ngl the fed independence thing is actually the real plot twist here... like, imagine if the fed actually becomes political theatre, that's when things get *spicy* for real. silver dumping 8.7% overnight? proof sketch: rate expectations got inverted so hard nobody saw it coming lmao

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LightningWallet

· 23h ago

It's the same political tug-of-war script again, really getting on my nerves. This sudden plunge in silver is basically a game of expectations, swinging back and forth. Whether or not there will be a rate cut depends on whether the Fed remains independent. Honestly, who knows? No rate cut by 2026? Then how long do holders have to wait?

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BuyTheTop

· 01-01 03:18

The 200% surge in silver was crushed in a wave, and this is the price paid for the Federal Reserve's independence dilemma. The political game was won, but the wallet lost.

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FadCatcher

· 2025-12-30 03:31

Silver's 200% surge was directly cut in half, this is the cost of political gamesmanship This wave of volatility feels like a gamble over who will sit as the Federal Reserve Chair, it's really absurd Expectations of rate cuts keep pulling back and forth, I was directly thrown out Is the independence of the Federal Reserve even in question? That's the most terrifying part No rate cuts in 2026? Then how can we still expect the aggressive rate cut cycle next year? Cryptocurrencies and precious metals are probably just sacrificial offerings for market disagreements Political signals vs. financial warnings, how can this contradiction be resolved? Investors caught in the middle are really amusing Silver fell straight from heaven to hell, its gains this year instantly evaporated, just thinking about it is exhausting U.S. banks are speaking harshly, low interest rates aren't necessarily good, so what about high interest rates? Not necessarily either Is this expectation battle just beginning? How many more such crashes will we have to endure?

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WinterWarmthCat

· 2025-12-29 17:54

Here we go again. As soon as there's a movement on the Federal Reserve side, precious metals start playing roller coaster, it's really exhausting. Political interference in the independence of the central bank? If that really happens, the market will crash. Silver's surge of 200% was directly cut in half. This time was really harsh, but it feels like it's just the beginning. Can a large rate cut really save the market? Haha, low interest rates may not necessarily be a good thing, everyone. If there’s no rate cut by 2026, this current dip will be a bit awkward, haha. Fighting on both sides, retail investors like us can only be cannon fodder. What else can we do? This move seems to be heavily influenced by politics. What about the independence of the Federal Reserve? I really didn't expect silver to fall like this. At the beginning of the year, I was still dreaming of double digits... Even US banks have issued warnings, indicating that things might not be that simple.

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NotFinancialAdvice

· 2025-12-29 17:54

Silver has fallen so much; it was obvious from the start that no one would do well under political games. --- Here we go again, rate cuts, rate cuts. Can Trump's wishful thinking come true? Banks are talking about risks, and we're still dreaming. --- A 200% increase just disappeared; this is the fate of crypto and precious metals—just a cycle. --- If the Federal Reserve's independence is lost, I will directly withdraw from dollar assets, really. --- Not cutting rates in 2026? Then what are these bullish people doing now? Just bagholders. --- The most frightening thing is a reversal of expectations. Those who bet correctly on the direction make money; everyone else gets cut. --- Precious metals and the crypto market are both volatile. What does this indicate? Political factors are the ultimate driving force. --- I just want to know, before the next Federal Reserve chair is chosen, how many more such crashes will we experience. --- American banks are sounding the alarm; it's time to listen, or else the market will really punish us.

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Blockchainiac

· 2025-12-29 17:45

Silver has fallen so much, is it really the policy expectations' fault, or is it just the big players harvesting... --- Interest rate cuts delayed until 2026? Then we coin hoarders still have to wait another two years, who can stand that. --- The Federal Reserve's independence is almost gone, political interference in finance is becoming more and more outrageous, no wonder the market is so chaotic. --- A 200% increase just collapsed like that, investing in precious metals is not as good as betting on crypto, at least the logic is clear. --- So is now the time to buy the dip or continue to hide? Feels like this oscillation will last a long time... --- If Trump really takes office, he dares to implement any policy, how can the market price things?

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MissedTheBoat

· 2025-12-29 17:43

Another drama about the Fed's independence, I can't help but laugh. The routine of falling and rising has become boring, and the key is whether Trump dares to really move the Federal Reserve. Cutting interest rates, I've been hearing about it for half a year, but silver directly gave me an eight-character head, a bullish bloodbath. Political interference in the central bank? Then just wait for the market to teach you a lesson. This time, they really won't cut interest rates until 2026... then my coins will be crying.

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MaticHoleFiller

· 2025-12-29 17:34

The recent plunge in silver, I really can't hold on anymore, a 200% increase was instantly wiped out. The expectation of rate cuts reversed, and the market is like a roller coaster, dizzying. Trump's side hinted at supporting rate cuts, but then someone said there might be no cuts in 2026. Who's really calling the shots? The independence of the Federal Reserve is at risk, and us retail investors are really suffering. Political games are political games, but the coins and silver in our hands still need to be watched carefully. Wait a minute, is this an opportunity for big V to scoop the bottom? I feel like someone is deliberately crashing the market. Cryptocurrency and precious metals fluctuate together, and the rhythm is completely driven by expectations. I'm truly amazed. No rate cuts came, but the market fell like this first. Feels like the tricks are getting deeper and deeper.

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