The silver market is experiencing some extreme price movement as investors, especially those on Reddit, have not created the lasting short-squeeze in the marketplace they were hoping for; but one bank sees high potential for the metal.

In a Tuesday report, Michael Widmer, who is the PM analyst over at Bank of America, claimed that he is staying bullish on silver, anticipating that prices could rise to $35 with the possibility of going to all-time highs around $50 per ounce.

Widmer also said that the recent failed rally above $30 per ounce is concerning for the market in the close-term. However, he added that the market continues to be supported by strong financials. His words come as silver gave up all of Monday’s increases. March silver futures last exchanged hands at $26.77 per ounce, lower 9% on the day.

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“The speed of this rally is what is worrying, with markets like China trading at large discounts now,” he said. “While we are staying bullish on the underlying numbers, this is worth watching because lower commercial buying in the end means that a rally might come to an abrupt stop.”

While the market has seen lots of volatility this past week, Widmer stated that this action is not outside of norms.

“Many of the metrics have stayed inside of recent levels, showing that dislocations have been managed. In particular, investor events do not appear to have disrupted much,” he said.

Looking past the volatility, Widmer said he is bullish on silver as the fundamental numbers of supply and demand support an increase in price. He stressed that stockpiles in silver have lowered and the market is pretty much balanced as producers have cut production recently.

For the supply side, Widmer predicted silver to get a major increase this year as President Biden moves toward new policies on creating new green tech.

He said that solar demand has gone up as Biden pushed to lower emissions to zero by the year 2035.

“To do that, electricity production would probably need to be overhauled, possibly through an investment in solar technology. Under our base-level prediction, we see a silver deficit this year, a shortfall that will continue during Biden’s plan,” he said.

Visa’s CEO Alfred Kelly released new information about his company’s plans to allow cryptocurrencies on its network. Kelly said there was no reason not to add cryptocurrencies since they are increasingly “recognized as a method of exchange.”

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During an earnings call, Kelly said that because of Visa’s “global reach and brand”, the company is “uniquely stationed to make cryptocurrencies safer.” The CEO added that Visa also intends to make cryptocurrencies “more useful.”

Kelly then said Visa will segment the market into two areas, cryptocurrencies and digital currencies. Saying the cryptocurrency segment will include cryptos that are viewed “as digital gold.” According to Kelly, such currencies are “held as assets and not used as a method of payment.” The CEO then talked about the company’s goal for such currencies:

Our strategy is to create partnerships with exchanges to let customers purchase these currencies with their Visa credentials or to use their Visa to make a purchase anywhere Visa is accepted.

Concerning the second segment, the Visa boss said these will contain “fiat-backed digital currencies  such as central bank issued digital currencies.” He added that these emerging innovations may be “utilized in the future for commerce just as any other currency.”

The Visa leader also revealed some of the 35 partners that have already signed on. These include providers like “Bitpanda, crypto.com, Blockfi, and Fold” Kelly said these partnerships “represent the future of more than 50 million Visa credentials.”

Unprecedented desire for silver has continued over the weekend, causing the physical market to be unable to meed demands.

After starting the huge short-squeezes in Gamestop and AMC, investors on social media made a push into silver. The Wall Street Bets chat room on Reddit was among the leaders of the push with its thread titled: ‘The largest short squeeze $SLV Silver to 1000$.’

The movement of investors into silver has led to an impressive gain for the metal. March silver futures ended Friday at around $27 per ounce, for a total 5% increase.

In expectations of a huge Sunday, investors have been buying physical silver. Many dealers have been forced to stop online orders due to the shocking demand, confronted with price uncertainty.

Even as silver sees good gains and might see even higher gains, many analysts are sounding the alarm that investors should be wary of this market.

During an interview, Peter Hug, the trading director at Kitco Metals, stated that while there is great supply of silver products, the pandemic has led to a shortage of bars and coins, so this increase in demand is causing a lot of problems in the market.

He went on to say that overall, he anticipates silver to go higher, but investors should practice caution in the current environment.

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“I believe silver priced at $27 gives long-term value, however investors should be careful,” he stated.

More analysts are issuing the same concerns. Ole Hansen, leader of commodity strategy inside Saxo Bank, predicted that even though silver had good increases last week, those gains were within the average volatility. He went on to say that traders and investors should watch major technical signs, with great resistance at $28 per ounce.

“Silver has made a large shift, but the action has not broken any overall trends, so we must wait to see how large or small the momentum is,” he stated.

While silver maintains the room to move higher in the short-term, Hansen says there is not enough short positioning to lead to a major squeeze. Hansen went on to say he is bullish on the metal; but, it will be hard for the market to keep gains as gold prices sit below $1,900 per ounce.