Silver Crashes 30% in Worst Day Since 1980 as CZ Defends Bitcoin

Binance CEO says crypto markets are still young and face heavy pressure, but hold large growth potential.

Jan. 31, 2026 at 12:15am

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Gold and silver suffered one of their worst trading days in decades, with silver crashing nearly 30% in a single session - its worst daily fall since 1980. The selloff was triggered by President Trump's nomination of Kevin Warsh, seen as a hawkish Federal Reserve chair, and a surging U.S. dollar. Binance CEO Changpeng Zhao (CZ) used the event to defend Bitcoin, saying even old assets can be volatile and that crypto markets, though young, hold large growth potential.

Why it matters

The crash in precious metals, traditionally viewed as safe-haven assets, raises questions about their stability and reliability. It also provides an opportunity for Bitcoin to position itself as a more stable and resilient store of value, especially as CZ highlights crypto's growth potential compared to the volatility of older assets.

The details

The selloff followed weeks of parabolic price gains in gold and silver, with silver jumping from $72 to over $120 per ounce in just a few weeks. The market became fragile, and the nomination of hawkish Federal Reserve chair Kevin Warsh, which pushed the U.S. dollar higher, provided the trigger. The CME Group also raised margin requirements on metal futures, forcing traders to add cash or close positions, leading to a cycle of liquidations that drove silver down from over $120 to around $78 for March futures.

  • Gold fell about 15% from its record near $5,500 per ounce to around $4,700 on January 31, 2026.
  • Silver crashed nearly 30% in a single session on January 31, 2026, its worst daily fall since 1980.

The players

Changpeng Zhao (CZ)

The founder of Binance, a leading cryptocurrency exchange, who defended Bitcoin's role in modern markets in the wake of the precious metals crash.

Kevin Warsh

The nominee for the next Federal Reserve chair, seen as a hawkish pick that triggered the selloff in precious metals.

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What they’re saying

“This can happen with even a physical asset, like gold and silver, with thousands years of history. Bitcoin is a 17 years old technology, heavily suppressed in most of its existence. Most other crypto are younger. We are still early.”

— Changpeng Zhao (CZ), Binance CEO (Twitter)

What’s next

By early January 31, prices tried to stabilize, with silver trading near $85 and gold holding above $4,700. Some traders called it a shakeout, while others feared a bubble had burst. The crash changes the view of metals, no longer seen as calm and steady, but rather speculative, giving Bitcoin a new talking point in the fight for safe haven status.

The takeaway

The crash in precious metals, traditionally viewed as safe-haven assets, highlights the volatility that can affect even long-established markets. This provides an opportunity for Bitcoin to position itself as a more stable and resilient store of value, especially as the crypto market's growth potential is emphasized in contrast to the instability of older assets.