Precious metals are being sold off all at once. Silver fell from a peak of $120 to $75, dropping 35% in just a few hours. Gold has also climbed back from $5,600 to $4,718, down 12%. Platinum and palladium have both fallen by more than 20% as well. It’s the kind of wild swings you saw back during the previous cryptocurrency bubble.

It looks like the impact of this sudden surge and crash in precious metals is also spilling over into the crypto market. Over the past few months, money has been pouring into commodity markets, so there may have been outflows from Bitcoin. But it seems that flow is starting to change now. Bitcoin has recently been trading in the low-$72,000 range, recovering from last week’s lows. Since US stocks are also being sold off, it feels like risk assets overall are entering a correction phase.

The backdrop is that the monetary policy of the Trump administration is having an effect. A new Fed Chair nomination is viewed as hawkish, and that likely triggered risk-avoidance selling. But according to market participants, the overheating of the cryptocurrency bubble has settled down for the time being, and after that, options buying to respond to the uptrend since February has become active. In other words, after going through this adjustment, it may be moving on to the next step. The market always keeps readjusting like this, so it might be only a temporary reaction.