Silver Prices Crash 40% in Days: What Caused the Sudden Plunge?

• Silver prices surged 68% to $121/ounce by end of January 2026, then plummeted over 40% to $70/ounce in early February.
• The crash was driven by excessive market leverage, shifts in interest rate expectations, and rapid position cutting, not supply issues.
• A Kedia Advisory report highlights a sudden shift in US monetary policy expectations, increased real returns, and a stronger dollar as triggers.
• Exchanges raised margin requirements, forcing investors to reduce positions and triggering algorithmic selling and ETF redemptions.
• Analysts view this as a 'de-leveraging cascade' and a financial reset, with prices moving back towards fundamental levels; caution advised until prices stabilize above $94.80/ounce.