2026-01-08 19:35:35

The predictive market is gradually evolving into a complex ecosystem of financial derivatives, and this trend itself is neutral—it's all about how it is used. Recently, an interesting phenomenon has been observed: silver is susceptible to passive fund shocks during index rebalancing cycles. Specifically, when index adjustments trigger rebalancing, a large number of tracking funds are forced to close positions, and open contracts for commodities like silver may need to absorb approximately 25% of the existing positions. This passive selling pressure clearly suppresses prices. From a trading perspective, this means that the short-term upward momentum for silver is limited—unless new fundamental catalysts emerge, the selling pressure caused by index rebalancing is enough to eat up much of the upside potential. Therefore, at this stage, I believe that a cautious optimism is more realistic.

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MEVHunter_9000

· 7h ago

The rebalancing operation was indeed aggressive; the passive selling pressure on silver directly wiped out 25% of the position, no wonder it can't recover in the short term.

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MEVictim

· 01-09 08:31

The passive selling pressure of silver, with 25% position absorbed, is indeed intense, and short-term improvement is unlikely.

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ZkSnarker

· 01-08 20:05

imagine if we just pretended rebalancing cycles don't exist... yeah ok so the 25% liquidation thesis is actually legit here, the passive flows thing is peak market structure moment

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SmartMoneyWallet

· 01-08 20:05

25% position liquidation, this number doesn't seem exaggerated—passive funds are just that brainless, they only remember to close positions on rebalancing day. Silver is now being used as a cash machine by these tracking funds, unless there's a sudden supply shock, it's a short-term dilemma.

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NFTragedy

· 01-08 20:04

The passive selling pressure in silver this time is indeed fierce. If the 25% existing position can't be digested, it will have to take more hits. Index rebalancing is like a time bomb; retail investors can't hide from it. Unless there's a black swan event, don't expect a breakout in the short term. Being cautiously optimistic sounds nice, but in reality, it's just waiting to buy the dip. The derivatives market is becoming more and more complex, and there's another tool for big players to fleece retail investors.

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RetiredMiner

· 01-08 20:01

The logic behind the index rebalancing is indeed ruthless; the passive funds are cutting quite deeply.

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LiquidatedAgain

· 01-08 19:49

Once again, passive selling pressure dominates, and Silver is definitely going to be cleaned out again this time.

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