Silver Prices Plunge, Are Big Banks’ Hidden Hands to Blame?... “Bitcoin Should Be Wary Too”

▲ Silver, Bitcoin (BTC)/ChatGPT-generated image

The record-breaking crash in the silver market has revealed not just a simple fluctuation in commodity prices but the reality of meticulous market manipulation led by global financial giants. At the same time, it is sending a powerful warning message to Bitcoin (BTC) investors.

Cryptocurrency content creator and analyst Lark Davis analyzed in a video uploaded to his YouTube channel on February 14 (local time) that the backdrop to silver, a massive $4 trillion asset, plunging 40% in just two weeks and moving like a meme coin lies in the dark collusion of major banks. Davis emphasized that the collapse in silver prices mirrors the movements of powerful forces operating across the broader digital asset market, including Bitcoin.

At the center of the incident is JPMorgan, which had maintained a short position in silver around the $120 level and faced unrealized losses totaling $5 billion. To avoid potentially massive damage if prices surged to $150, JPMorgan is reported to have artificially collapsed the paper silver market before closing its short positions near $78. During this process, China’s silver export ban, which took effect on January 1, and the withdrawal of funds by Hong Kong financial firms contributed to selling pressure on Bitcoin, exacerbating overall market liquidity tightening.

Signs of organized intervention by a financial cartel are also emerging. At the height of the silver price crash, services at HSBC, Hong Kong’s largest bank, were suddenly suspended, while the London Metal Exchange (LME), owned by Hong Kong Exchanges and Clearing, experienced a system error before market open, raising suspicions of deliberate market control. Amid the chaos, banks reportedly generated $765 million in arbitrage profits in a single day, and JPMorgan switched its position by aggressively purchasing physical silver ETFs in the $60 range, about 20% below market prices.

The recurrence in 2026 of manipulation tactics such as spoof orders, which distorted the market between 2009 and 2016, is amplifying losses for retail investors. Davis pointed out that rosy projections heard near market peaks are often promotional narratives spread by major players seeking to offload their holdings. He added that as silver market volatility has an immediate impact on Bitcoin’s price movements, investors must closely monitor the increasingly solidified connection between traditional financial markets and digital asset markets.

Ultimately, surviving in asset markets requires not fighting against major players but reading their movements and moving alongside them. In markets driven by institutions such as BlackRock and Coinbase, retail investors need the wisdom to ride on the backs of sharks—the market’s predators—and share in the gains. Now more than ever, objective analysis of on-chain data and large capital flows is essential, rather than being swept away by fear or optimism intentionally created by dominant forces.

Disclaimer: This article is for investment reference only, and no responsibility is taken for investment losses based on its content. The information provided should be interpreted solely for informational purposes.