Compass Investments

– A sharp drop in commodity prices exacerbates the general economic tension in the markets.

Bitcoin is showing early signs of stabilization.

– Market participants are waiting for confirmation from the dynamics of commodity prices.

The collapse of silver prices shook the global financial markets, and, as practice shows, the cryptoindustry can not ignore shocks in the commodities sector for a long time. However, while metals are getting cheaper, bitcoin (BTC) is showing early signs of technical recovery.

This has put traders in an unusual macroeconomic position, leaving them to wonder whether the commodities decline will continue to drag down the cryptocurrency market, or whether bitcoin will start to move on its own.

Over the past two days of trading, silver prices have plummeted more than 40% , triggering forced liquidations and heavy volatility in commodities.

An analysis by renowned crypto expert Michael van de Poppe in his February 2 post on X classifies the move as a mass beating, noting that cryptocurrencies often follow commodities during periods of broadly reduced risk appetite.

Silver continues its correction, losing over 40% in two days.

massive bloodshed. $BTC felt it over the weekend, but has stabilized in the last few hours when commodities are under the most pressure.

Remember, when commodities get cheaper, cryptocurrencies follow.

Bitcoin reacted over the weekend, but since then its price movement has slowed while commodities have faced the strongest selling pressure. This divergence matters because commodities have traditionally been a leading indicator of stress, reflecting tightening liquidity and macroeconomic shifts before risk assets fully react.

Van de Poppe believes that when commodities finally stabilize, cryptocurrencies have historically performed better in the recovery phase, but the timing remains uncertain.

Despite the increasing macroeconomic pressure, bitcoin’s technical pattern is signaling the opposite. Cryptocurrency specialist Ali Martinez points out the numerous TD Sequential buy signals lined up on bitcoin’s 12-hour timeframe, which often occur near local lows rather than weakness in the middle of a trend.

TD signals do not indicate scale, but often capture the exhaustion of selling pressure. In practical terms, this could mean bitcoin is absorbing macroeconomic stress faster than commodities, even as silver continues to fall.