The Abrdn Silver ETF Trust (SIVR) experienced a sharp intraday decline of 16.61% on Friday, reflecting a broad and severe sell-off in silver-related assets.

The plunge is attributed to a confluence of factors. Significant profit-taking ensued following silver's explosive 65% rally over the past month. The sell-off was exacerbated by heightened concerns over monetary policy, driven by the imminent announcement of a new Federal Reserve Chair, with markets fearing the appointment of a hawkish candidate which could lead to tighter policy and a stronger U.S. dollar, pressuring non-yielding assets like silver. Additionally, recent increases in margin requirements by the CME have forced leveraged speculative positions to unwind, contributing to the intense downward pressure as spot silver broke below the $100 per ounce mark.

"Although a significant part of the move in the rise in silver has been based upon sound fundamentals, there was clearly a speculative excess within the market and I think that's getting blown off," said independent analyst Ross Norman, summarizing the market's corrective move.