I saw yesterday the big drop in gold, silver, and copper on the LME, and it immediately reflected in the crypto markets. Copper fell nearly 4% from record highs, while silver and gold dropped by 5.9% and 4% respectively. The impact on blockchain was very rapid.

Within 24 hours, tokenized metal products gained approximately $120 million in liquidations on crypto exchanges. Silver-linked contracts led the $32 million losses, followed by gold and copper futures. I saw that the prices of XAU and XAUT dropped more than 7% – traders were heavily leveraged in these products.

The reason? USD strength due to speculation about Federal Reserve leadership. When the dollar rises, commodities priced in USD lose value. But interestingly – Bitcoin traded almost independently, showing that its role as a standalone asset is growing, not just a commodity proxy.

What happened demonstrated how crypto venues are now truly used by traders for macro bets. It’s no longer an isolated market – it’s just parallel to traditional trading. When gold, silver, and copper go up, crypto is used for leverage and 24/7 access. When they go down, the risk is immediately realized on the blockchain. The relationship between crypto and traditional markets has become more obvious now.