Silver bulls eye $110 breakout as short squeeze and Fed bets collide with BTC in the crosshairs

Source: CryptoNewsNet Original Title: Silver bulls eye $110 breakout as short squeeze and Fed bets collide with BTC in the crosshairs Original Link:

Market Overview

Silver futures have surged to about 99.3 dollars per troy ounce, up 3.3% on the day, nearly 38% over the past month and more than 220% year-on-year, pushing to fresh all-time highs. Gold is riding the same wave, trading near 4,938 dollars per ounce, up around 10% year-to-date and almost 80% over the past year, as capital crowds into classic safe-haven assets.

The rally has been fueled by a historic short squeeze and strong retail buying, as well as tightening export controls. A weakening dollar has provided additional support to the rally in precious metals.

Macro Drivers

Investors are rotating into real assets as the dollar comes under pressure from shifting geopolitical dynamics and rising fears about potential weaponization of sizeable US-asset holdings.

The Federal Reserve is widely expected to hold rates steady, with markets still pricing in two rate cuts later this year—a setup that historically compresses real yields and flatters hard assets. President Donald Trump is due to name the next Fed chair after interviewing candidates, and a more dovish pick would likely strengthen expectations for further easing, adding tailwind for bullion and industrial metals.

Crypto as High-Beta Hedge

Crypto is trading like a high-beta cousin of the metals bid. Bitcoin is hovering around 89,000-90,000 dollars, with recent closes near 89,450 dollars and a roughly flat to slightly negative move over the last 24 hours after notching new cycle highs earlier in January. Ethereum is changing hands around 2,920-2,950 dollars, with a small daily decline of around 1% on heavier volumes.

Crypto still behaves as a risk-on, liquidity-sensitive hedge, while gold and silver increasingly trade as consensus macro insurance.

Price Outlook

The current setup looks like the late phase of a positioning squeeze layered on top of genuine macro stress. The base case for the next 6-12 months is:

• Silver: stays structurally higher, with a wide 70-110 dollar range plausible if the short squeeze bleeds out but dovish Fed policy and ongoing geopolitical tension keep real yields capped.
• Gold: a grind toward and potentially through 5,000 dollars, provided rate cuts materialize and no sharp dollar rebound occurs.
• Crypto majors: volatile upside skew for BTC and ETH as long as liquidity expectations remain dovish, but with sharper drawdown risk than metals if growth shocks or regulatory headwinds arrive.