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$10 Trillion Vanishes as “Safe Havens” Crack

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Gold and Silver Price Performance

Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.

Grab a coffee because markets just sent a signal that doesn’t come with a clean headline. Gold, silver, and crypto are all moving the wrong way at once, leaving investors uneasy and searching for what quietly changed beneath the surface.

Crypto News of the Day: Bitcoin, Gold, and Silver Dump

More than $10 trillion in market value has been wiped out from gold and silver in just three days, marking one of the largest and fastest episodes of wealth destruction in the history of modern metals.

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The sudden collapse has rattled global markets, raising urgent questions about liquidity, monetary policy, and whether traditional “safe haven” assets are losing their defensive role.

Spot gold prices plunged below $4,500 per ounce, down nearly $1,000 in three trading days. Meanwhile, silver fell below $72, extending losses toward 40% from recent highs.

In market-cap terms, gold alone erased roughly $7.4 trillion, while silver shed another $2.7 trillion, a combined wipeout larger than the entire cryptocurrency market. As of this writing, gold was trading at $4,702, while silver was trading at $81.59.

Gold and Silver Price Performance
Gold and Silver Price Performance. Source: TradingView

What makes the move especially unsettling is the absence of a clear catalyst. There has been no major geopolitical shock, recession signal, or inflation surprise. Instead, markets appear to be repricing a future defined by aggressive Federal Reserve balance-sheet contraction.

“Markets are reacting to incoming Fed Chair Kevin Warsh’s message: ‘The Fed should shrink its balance sheet,’” Coin Bureau wrote, noting that Warsh has argued the Fed’s roughly $7 trillion balance sheet is “trillions larger than it needs to be.”

Less balance sheet, the argument goes, means less liquidity supporting stocks, crypto, and even metals.

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Panic Spreads as Crypto Joins the “Safe Haven” Breakdown

The impact has not been confined to precious metals. Crypto markets have lost more than $430 billion in market value in just four days.

This suggests fears that a liquidity-driven unwind is spreading across asset classes. Bitcoin and Ethereum have both suffered sharp drawdowns, while broader crypto sentiment has deteriorated quickly.

Bitcoin and Ethereum Price Performance
Bitcoin and Ethereum Price Performance. Source: TradingView

“Gold is down 20% from its peak, and it has erased $7.4 trillion in market value, which is 5 times the entire market cap of Bitcoin. Silver crashed nearly 40%, wiping out $2.7 trillion, which is equal to the entire crypto market cap. Safe-haven assets are moving like crypto meme coins,” stated analyst Bull Theory.

Investor psychology has also begun to fracture amid reports that more investors are shaken in this cycle than even during the 2022 crypto collapse.

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“Some bailed into gold because they still want to stay on the hard money train,” wrote Natalie Brunell, cautioning against confusing fear-driven price action with a broken long-term thesis for Bitcoin.

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At the same time, some strategists remain constructive on gold over a longer horizon, with Deutsche Bank reportedly maintaining its $6,000 gold forecast, even amid the slump.

This highlights the divide between short-term liquidation pressure and longer-term monetary hedging narratives.

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Others see historical parallels, with analyst Zev comparing the current gold rally-and-crack pattern to the 1980 peak. Based on this, the analyst warns that the biggest risk may not be a total collapse, but years of stagnation following a parabolic move.

“Safe haven ≠ buy at any price,” he cautioned.

Meanwhile, in a recent interview, Fundstrat’s Tom Lee argued that crypto’s recent underperformance relative to gold stems from a historic deleveraging event last October that damaged the crypto market structure.

While reaffirming Bitcoin’s “digital gold” thesis, Lee warned that the adoption path will remain volatile, with 2026 shaping up as a key stress test.

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Chart of the Day

Gold, Silver, and Bitcoin Market Cap
Gold, Silver, and Bitcoin Market Cap. Source: Top Assets by Market Capitalization

Byte-Sized Alpha

Here’s a summary of more US crypto news to follow today:

Crypto Equities Pre-Market Overview

Company Close As of January 30 Pre-Market Overview
Strategy (MSTR) $149.71 $139.47 (-6.84%)
Coinbase (COIN) $194.74 $187.89 (-3.52%)
Galaxy Digital Holdings (GLXY) $28.26 $27.03 (-4.35%)
MARA Holdings (MARA) $9.50 $9.04 (-4.84%)
Riot Platforms (RIOT) $15.47 $14.79 (-4.40%)
Core Scientific (CORZ) $17.99 $17.92 (-0.39%)
Crypto equities market open race: Google Finance

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Crypto World

Solana (SOL) Plunges Below $100, Bitcoin (BTC) Recovers From 15-Month Low: Market Watch

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BTCUSD Feb 4. Source: TradingView


Meanwhile, HASH and HYPE have declined the most over the past 24 hours after charting impressive gains lately.

Bitcoin’s adverse price actions as of late worsened yesterday when the asset tumbled to its lowest positions since early November 2024 at $73,000 before recovering by a few grand.

Most altcoins followed suit with enhanced volatility, but some, such as SOL, HYPE, and CC, have been hit harder than others.

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BTC’s Latest Rollercoaster

It was just a week ago when the primary cryptocurrency challenged the $90,000 resistance ahead of the first FOMC meeting for the year. After it became official that the Fed won’t cut the rates again, BTC remained sluggish at first but started to decline in the following hours.

The escalating tension in the Middle East was also blamed for another crash that took place on Thursday when bitcoin plunged to $81,000. It bounced off to $84,000 on Friday but tumbled once again on Saturday, this time to under $75,000. Another recovery attempt followed on Monday, only to be rejected at $79,000.

Tuesday brought the latest crash, this time to a 15-month low of $73,000. It has rebounded since then to just over $76,000, but it’s still 3% down on the day. Moreover, it has lost 14% of its value weekly and a whopping 18% monthly.

Its market capitalization has plummeted to $1.525 trillion on CG, while its dominance over the alts has declined to 57.3%.

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BTCUSD Feb 4. Source: TradingView
BTCUSD Feb 4. Source: TradingView

SOL Below $100

Most larger-cap altcoins have felt the consequences of the violent market crash lately. Ethereum went from over $3,000 to $2,100 in the span of a week, before bouncing to $2,280 as of now. BNB is down to $760, while SOL has plummeted to under $100 after a 7% daily decline.

Even the recent high-flyer HYPE has retraced hard daily. The token is down by 11% to $33. CC and ZEC are also deep in the red, while XMR has gained the most from the larger caps.

The cumulative market cap of all crypto assets has seen more than $70 billion erased in a day and is down to $2.65 trillion on CG.

Cryptocurrency Market Overview Feb 4. Source: QuantifyCrypto
Cryptocurrency Market Overview Feb 4. Source: QuantifyCrypto

 

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Crypto World

Pumpfun Unveils Investment Arm and $3 Million Hackathon

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Pumpfun Unveils Investment Arm and $3 Million Hackathon


PUMP rallied as much as 10% but erased its gains as crypto markets dipped.

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Crypto World

Spot Bitcoin ETF AUM Hits Lowest Level Since April 2025

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Spot Bitcoin ETF AUM Hits Lowest Level Since April 2025

Assets in spot Bitcoin (BTC) ETFs slipped below $100 billion on Tuesday following a fresh $272 million in outflows.

According to data from SoSoValue, the move marked the first time spot Bitcoin ETF assets under management have fallen below that level since April 2025, after peaking at about $168 billion in October

The drop came amid a broader crypto market sell-off, with Bitcoin sliding below $74,000 on Tuesday. The global cryptocurrency market capitalization fell from $3.11 trillion to $2.64 trillion over the past week, according to CoinGecko.

Altcoin funds secure modest inflows

The latest outflows from spot Bitcoin ETFs followed a brief rebound in flows on Monday, when the products attracted $562 million in net inflows.

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Still, Bitcoin funds resumed losses on Tuesday, pushing year-to-date outflows to almost $1.3 billion, coming in line with ongoing market volatility.

Spot Bitcoin ETF flows since Jan. 26, 2026. Source: SoSoValue

By contrast, ETFs tracking altcoins such as Ether (ETH), XRP (XRP) and Solana (SOL) recorded modest inflows of $14 million, $19.6 million and $1.2 million, respectively.

Is institutional adoption moving beyond ETFs?

The ongoing sell-off in Bitcoin ETFs comes as BTC trades below the ETF creation cost basis of $84,000, suggesting new ETF shares are being issued at a loss and placing pressure on fund flows.

Market observers say that the slump is unlikely to trigger further mass sell-offs in ETFs.

“My guess is vast majority of assets in spot BTC ETFs stay put regardless,” ETF analyst Nate Geraci wrote on X on Monday.

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Source: Nate Geraci

Thomas Restout, CEO of institutional liquidity provider B2C2, echoed the sentiment, noting that institutional ETF investors are generally resilient. Still, he hinted that a shift toward onchain trading may be underway.

Related: VistaShares launches Treasury ETF with options-based Bitcoin exposure

“The benefit of institutions coming in and buying ETFs is they’re far more resilient. They will sit on their views and positions for longer,” Restout said in a Rulematch Spot On podcast on Monday.

“I think the next level of transformation is institutions actually trading crypto, rather than just using securitized ETFs. We’re expecting the next wave of institutions to be the ones trading the underlying assets directly,” he noted.