Gold markets experienced an unprecedented crash on July 23. Data shows gold prices tumbled from near $5,600 per ounce to around $5,400, dropping over 8% intraday. According to market data, gold lost approximately $3.2 trillion in market value within less than one hour, marking the largest intraday swing ever recorded for the metal. Prices partially recovered later, but the total swing reached $5.5 trillion in a single day, exceeding volatility seen during the 2008 financial crisis.
Cathie Wood's gold prediction had drawn attention before the crash. The ARK Invest founder recently highlighted that gold's total market cap relative to U.S. money supply (M2) has reached an all-time high, higher than the peak in 1980 and matching conditions seen during the Great Depression in 1934. She argued that such extreme readings often appear near the end of a cycle and that today's economy does not reflect crisis-level inflation or deflation, making gold's rally vulnerable to correction if the dollar strengthens.
Silver plunges 12%, forced liquidation spreads
Silver suffered even worse. Silver prices plunged over 12% intraday, erasing nearly $760 billion in market capitalization. Traders described the move as forced liquidation driven by profit-taking after weeks of parabolic gains.
Stocks and crypto hit hard
The gold selloff quickly spilled into equities. The S&P 500 dropped around 1.2%, while the Nasdaq fell more than 2.5% at one point, erasing nearly $1.5 trillion combined before partial recovery.
Crypto markets were not spared. Bitcoin fell sharply from around $89,000 to below $82,000, triggering approximately $1.75 billion in liquidations within 24 hours. The total crypto market lost nearly $100 billion in value during the chaos. Despite the drop, Cathie Wood's bitcoin views remain long-term bullish; some analysts believe such liquidation-driven moves often reset leverage and can later support the next Bitcoin bull run.
What markets are watching now
Cathie Wood's prediction has divided opinion. Some investors see gold's volatility as a warning sign of overheating, while others argue central bank buying and geopolitical risks will support prices long-term. Traders are closely watching gold and bitcoin prices for signs of stabilization. With volatility running above 2008 levels, markets may remain unstable in the near term, making risk management more important than prediction.