The iShares Silver Trust (SLV) experienced a sharp intraday plummet of 15.35% on Thursday, as the exchange-traded fund tracking silver prices was hit by a perfect storm of bearish factors.

The severe decline was primarily driven by structural market forces, notably consecutive margin requirement hikes imposed by the CME Group. These increases forced leveraged speculative positions to liquidate, triggering a cascade of selling pressure. This deleveraging process was exacerbated by panic selling among retail investors, partly fueled by the resurgence of an old rumor regarding a potential IRS crackdown on silver holders.

Fundamental headwinds also weighed on the metal. Weaker-than-expected U.S. ADP employment data cooled investor expectations for imminent Federal Reserve interest rate cuts, diminishing the appeal of non-yielding assets like silver. Additionally, a higher U.S. dollar index and the nomination of Kevin Warsh as the next Fed Chair—perceived as having hawkish leanings—created a bearish macroeconomic backdrop. The decline also reflected a broader speculative unwind following silver's historic rally, with the metal retracing significant gains amid thin liquidity and extreme volatility.