Plunge in gold, silver, and copper sparks $120 million rout in blockchain metal clones

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Plunge in gold, silver, and copper sparks $120 million rout in blockchain metal clones Metals remain a leading theme for the year while bitcoin trades independently, suggestive of its growing role as a standalone risk asset. By Shaurya Malwa | Edited by Omkar Godbole Updated Jan 30, 2026, 6:50 a.m. Published Jan 30, 2026, 6:16 a.m. Make us preferred on Google What to know : Copper prices retreated sharply from record highs after a week of extreme volatility on the London Metal Exchange and shifting positions by Chinese traders. The pullback in metals spilled into crypto markets, where tokenized copper, gold and silver products saw about $120 million in liquidations as traders used crypto venues as alternative macro trading rails. Despite Friday’s setback, metals remain a leading theme for the year, while bitcoin traded largely independently, suggestive of its growing role as a standalone risk asset rather than a macro proxy. The crypto market's tight links with traditional markets laid bare Friday as a sharp slide in metal prices shook out millions in leveraged bets on blockchain versions of gold, silver, and copper. Three-month copper futures on the London Metal Exchange (LME) fell nearly 4% from Thursday’s peak above $14,500 a ton, settling closer to $13,000 amid technical disruptions at the LME, and a sharp shift in positioning by Chinese traders. The move marked a pause after a relentless run driven by Chinese demand, energy transition optimism and a weaker U.S. dollar. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . Gold and silver prices fell by 4% and 5.9%, respectively. That retrenchment showed up quickly in crypto markets. Tokenized metals products tied to copper, gold and silver saw an usually-high spike in losses as their spot prices cooled. Across exchanges, derivatives and spot-style products linked to metals logged roughly $120 million in combined liquidations over the past 24 hours. Silver-linked contracts led the pack at $32 million in losses, followed by gold- and copper-linked futures. Prices for tokenized bullion products like XAU and XAUT dropped over 7%. These liquidations reflect how crypto venues are increasingly being used as complementary rails for macro trades. When metals were ripping higher earlier this week, traders leaned into crypto-native contracts for speed, leverage and round-the-clock access. As prices rolled over, those same markets became a release valve for risk. Dollar strength hurts The broader pullback in metals came as the U.S. dollar strengthened on speculation that the Trump administration may be preparing to nominate Kevin Warsh as the next Federal Reserve chair. A firmer dollar tends to pressure commodities priced in greenbacks, and Friday’s move hit metals across the board. Gold fell sharply from record highs, while silver, crude oil and iron ore also moved lower. Even with the setback, however, metals remain one of the strongest themes of the year so far. Copper is still headed for a strong weekly gain, having recently rallied on supply constraints and electrification demand, while gold continues to attract flows as investors hedge political and fiscal uncertainty. Crypto markets are increasingly along for that ride – not as a separate trade, but as a parallel venue where global macro bets now play out in real time. Gold Silver Copper Tokenization More For You Pudgy Penguins: A New Blueprint for Tokenized Culture By CoinDesk Research Dec 30, 2025 Commissioned by Pudgy Penguins Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale. What to know : Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token. The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility. View Full Report More For You Binance to shift $1 billion user protection fund into bitcoin amid market rout By Omkar Godbole , AI Boost | Edited by Shaurya Malwa 20 minutes ago Binance will convert the stablecoin holdings in its $1 billion Secure Asset Fund for Users to bitcoin over the next 30 days, with plans for regular audits. What to know : Binance will convert the stablecoin holdings in its $1 billion Secure Asset Fund for Users to bitcoin over the next 30 days, with plans for regular audits. The exchange has pledged to replenish the fund to $1 billion if bitcoin price swings cause its value to fall below $800 million. Binance framed the change as part of its long-term industry-building efforts. 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