Silver has just endured a brutal week, with call options obliterated and volatility skew flattening to neutral — a signal that could reverberate across risk assets including Bitcoin and the broader cryptocurrency market. After failing to hold above $88, silver tumbled into the $74–$76 region as traders rushed to lock in profits against a backdrop of climbing U.S. Treasury yields and a strengthening dollar.
The wipeout was swift. Many bullish options contracts lost value rapidly when the metal failed to sustain its highs. Bob Coleman, a trader who closely tracks silver charts, noted that call options were “obliterated” after Friday’s decline, and that volatility skew — previously heavily tilted toward upside bets — has now swung back to neutral. That indicates traders are no longer paying extreme premiums for bullish silver positions, reflecting a sharp turn in sentiment.
Technically, silver is attempting to stabilize. On the hourly chart, an inverted head-and-shoulders pattern is forming with repeated rebounds near the $73–$74 support zone. The 4-hour chart shows positive divergence in the Relative Strength Index, suggesting selling pressure may be fading. However, the breakdown below the 20-day EMA near $77.84 and the ascending triangle trendline suggests a corrective phase is still underway. A failure to reclaim those levels could see silver test $70.
The macro forces pressing on silver are equally relevant for crypto. The yield on the 10-year U.S. Treasury note rebounded to around 4.6%, while the CME FedWatch tool now shows a 51% probability of at least one Fed interest rate hike this year — a stark reversal from earlier expectations of cuts. Higher yields diminish the appeal of non-yielding assets, a group that includes both precious metals and cryptocurrencies. Comments from President Trump about finalizing a deal with Iran briefly eased bond yields, but the overall trend remains firm as long as inflation stays sticky and oil prices elevated on Strait of Hormuz fears.
Silver’s long-term fundamentals — a six-year supply deficit, 70% drawdown in COMEX inventories, and robust industrial demand from solar and EV sectors — may provide a floor. Yet the short-term mess of options losses, rising real yields, and a defensive investor posture creates headwinds that could easily spill over into Bitcoin and altcoins. As the relationship between crypto and macro conditions tightens, silver’s technical breakdown and the options market wipeout serve as a cautionary tale for crypto traders betting on an immediate recovery.
