Why Did Bitcoin, Gold, and Silver Fall? Here’s What Happened Behind the Scenes

The sharp wave that hit global markets on the night of January 29-30, 2026, turned into a multi-layered “cross-asset” sell-off that cannot be reduced to a single factor.

The abrupt reversal of the record rally in precious metals, the sharp pullback seen in major technology stocks (particularly Microsoft), and its reflection in cryptocurrencies, one of the most liquidity-sensitive areas, quickly created a chain reaction of panic.

One of the main triggers for the sell-off in the stock market was the pricing that followed Microsoft’s earnings report. While the company’s results exceeded expectations in some areas, the market’s focus was on the slowdown in Azure growth and the return profile of high spending on AI infrastructure. This concern led to a sharp drop of approximately 10% in the stock during the day, putting pressure on technology stocks.

During the same period, gold and silver saw an unusually sharp correction. Reuters reported that gold fell by approximately 8% during the day as the dollar strengthened following Trump’s announcement of Kevin Warsh as his nominee for Fed chairman; silver and other metals also retreated even more sharply. The Financial Times also wrote that gold, silver, and platinum experienced sharp losses after the Warsh news, acting like a “rewind” of the overheated movement that reached record highs earlier in the week.

Risk aversion in equities and the sharp correction in precious metals accelerated the unwinding of leveraged positions in cryptocurrencies. This reinforced the view that crypto is one of the assets that reacts most quickly to “liquidity shocks.”

Social media and some market accounts have featured posts suggesting that trillions of dollars in market value were lost in gold, silver, US indices, and cryptocurrencies in a short period of time, perhaps within an hour. While there’s no standard official statistical data point for these figures, news reports from Reuters and the Financial Times confirm that the sharp pullback in precious metals and the concentrated sell-off in technology stocks occurred “simultaneously.”

Although some buying activity is seen in a section of the market today, news flow indicates that risk perception has not fully normalized. Reuters noted that gold is still heading towards a strong monthly performance; however, intraday volatility and profit-taking have been very strong. This points to a regime where the risk premium remains high, even with a “partial pullback”.

*This is not investment advice.