Risk-off sentiment strengthened Sunday, triggered by a massive sell-off in leading cryptocurrencies and precious metals.
Crypto Bloodbath
Bitcoin dived below $76,000, marking its worst sell-off since early April, when President Donald Trump’s sweeping tariff measures sent the market into a tailspin. The apex cryptocurrency is down 11.42% year-to-date.
Ethereum crashed below $2,300, hitting levels last seen more than 7 months ago. The second-largest cryptocurrency has cratered 23% since the year began.
Meanwhile, Bitcoin’s market share stood at 59.3%, while Ethereum’s dominance fell below 11%.
Over $500 billion was liquidated from the market in the last 24 hours, according to Coinglass, with $373 million in levered longs wiped out.
Bitcoin’s open interest fell more than 10% last week, reaching $52.43 billion, as market sentiment plunged into “Extreme Fear.”
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.62 trillion, shrinking by 1.77% over the past 24 hours.
Gold, Silver Under Pressure
Stock futures ticked lower overnight. Futures tied to the S&P 500 dipped 0.03%, while Nasdaq 100 Futures fell 0.16%, as of 7:43 p.m. EDT. The Dow Jones Industrial Average Futures, meanwhile, eked out a gain of 0.03%.
Spot gold was down 2.50% to $4,740 an ounce, marking a share reversal from the highs of $5,590 earlier in the week. Spot silver traded up 0.49% to $85.29 an ounce, following a brutal sell-off on Friday.
Investors will watch Friday’s January jobs report closely for insights into the economy’s health and direction of the monetary policy.
Where Is the Best Entry Point?
Michaël van de Poppe, a well-known cryptocurrency trader and analyst, argued that Bitcoin’s multi-year lows against gold present a “tremendous opportunity” to scale in.
“The Dollar vaporizes anyways, so you’d rather want to benchmark vs. other scarce assets,” Van De Poppe said. “The accumulation phase is coming up.”
Ali Martinez, another well-known market commentator, stated he would wait for Ethereum to dip to $1,800 before buying, citing a downward trendline from last year’s highs.
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