Over the weekend, silver prices experienced extremely sharp fluctuations: the metal first reached a new all-time high near $84, then quickly retraced part of the gains. At the same time, gold prices rose to around $4,530, indicating increased interest in precious metals during this period. These movements resemble typical crypto market volatility and attracted attention from traders and investors.
Sharp Surge in Silver Prices
At the peak over the weekend, silver approached $84, setting a new record for the asset. Simultaneously, demand for gold pushed its price to about $4,530, strengthening the overall precious metals market momentum. More details on the reasons behind silver's rise can be found in the article why silver prices, which discusses demand factors.
Extreme Silver Volatility
Within a short timeframe, silver showed a sharp impulse: the price first increased by roughly 6%, then dropped 10% within an hour. Specifically, at 6:20 PM Eastern Time, silver futures surged to $83.75, gaining about 6% from the previous level.
By 7:30 PM Eastern Time, the price fell to $75.15—losing around 10% in approximately 70 minutes. Such ultra-fast retracements demonstrate that silver can behave extremely unpredictably even within a single trading session.
Fed Rate Impact on Silver Market
The outlook for precious metals markets is strongly influenced by expectations around Fed policy: with a new Fed chair taking office in 2026, the market anticipates potential significant interest rate cuts. These expectations are a key driver of increased demand for gold and silver, as rate changes affect the relative attractiveness of bonds and commodities.
Comparison with Cryptocurrency Market
While silver exhibited extreme intraday swings, Bitcoin appeared calmer in December: over the last 30 days, BTC declined by 0.5% and traded around $90,160. Despite this relative "quietness," Bitcoin previously reached an all-time high of $120,000 in early October.
Based on current levels, Bitcoin needs to rise about 6.5% to close the year with gains; for more on this, see the article about the $90,000 level and options expiry, discussing Bitcoin's relationship with gold records.
Why This Matters
If you mine cryptocurrency in Russia, sharp silver price swings won't directly affect your equipment's operation, but they reflect broader market volatility. Investor focus on precious metals can influence capital allocation among assets, indirectly impacting crypto market behavior.
Expectations about Fed rates—which have driven silver and gold demand—remain an important macro indicator: monetary policy changes affect liquidity and investor sentiment, thus influencing volatility in markets tied to mining profitability.
What to Do?
- Monitor prices and volatility: keep an eye on both crypto markets and precious metals dynamics to better assess mining income risks.
- Manage expenses: optimize energy consumption and maintenance to reduce business sensitivity to short-term price swings.
- Diversify income: if possible, combine mining with power sales or mining other coins to smooth revenue downturns.
- Maintain reserves: build a financial cushion sufficient to cover electricity and maintenance costs for several weeks during unfavorable market conditions.
- Use reliable sources: subscribe to relevant market updates and reviews to respond quickly to sharp changes.