Market volatility fluctuates: how 60 minutes of trading wiped out $5 trillion

Today, February 14th, global markets experienced a sharp correction during the opening of the American session. Interestingly, such large-scale movements occur repeatedly amid unstable geopolitical situations and high levels of margin trading. In just one hour, many traders lost significant sums, and the total market capitalization of assets decreased by an amount equivalent to the combined GDPs of Russia and Canada.

Precious Metals Under Margin Pressure

Gold fell by 8%, losing approximately $3.1 trillion from the market. Silver suffered an even greater blow — a 12% decline wiped out $700 billion. The main reason for such sharp movements was mass liquidation of highly leveraged positions. Retail investors who entered the market at peak prices were instantly caught in a destructive situation — their positions were automatically closed, fueling panic selling.

This scenario has repeated over the years, where inflated entry levels combined with short time horizons lead to immediate capital withdrawal from the market.

Stocks and Crypto: The Impact of Geopolitical Tensions

The S&P 500 lost 1.3% in value, corresponding to a $800 billion decline. The crypto market also decreased by $110 billion in total capitalization. The reasons proved to be deeper than a typical technical correction.

USS Abraham Lincoln disappeared from tracking radar, signaling a possible preparation by the US for military action against Iran. This geopolitical factor triggered a wave of selling across all markets — from stocks to digital assets. BTC dropped to $68,970 with a 24-hour decline of +3.74%, although it is currently showing some stabilization.

The Overall Picture: When Micro and Macro Converge

In just one hour, over $5 trillion was withdrawn from global assets. The figure is impressive not only for its magnitude but also for its speed — such a concentrated loss of capital highlights how vulnerable modern markets are to synchronized shocks.

Such episodes repeatedly teach investors risk management lessons. High leverage + geopolitical uncertainty = the perfect storm for markets. And today, we witnessed exactly that scenario in real time.