Market Overview

Bitcoin and Ether extended their recent losses as the cryptocurrency market continued to decline on Friday, following a sharp selloff on Thursday. Precious metals, including silver and gold, also fell, contributing to broader market weakness, while the U.S. dollar strengthened.
Crypto liquidations reached $1.8 billion, and bitcoin dominance slipped as investors rotated into higher-risk altcoins. Overnight, bitcoin (BTC) dropped 2.7% and ether (ETH) fell 3.5%, adding to Thursday’s steep declines.
Silver tumbled 20% from Thursday’s record high of $121, trading around $96, while gold fell 11% from Wednesday’s peak of $5,600, dropping below $5,000. U.S. equity index futures showed slight declines, and the dollar index (DXY) gained 0.57%, supported by the prospect of Kevin Warsh becoming the next Federal Reserve chairman.
Bitcoin’s slump to its lowest level since November triggered $1.8 billion in crypto market liquidations. The CoinDesk 20 Index (CD20) is now down 6.6% year-to-date, while the altcoin-heavy CoinDesk 80 Index (CD80) has fallen 2.28%, outperforming bitcoin.
Derivatives & Trading Activity
The selloff caused significant losses in leveraged crypto futures, with $1.8 billion liquidated in 24 hours. Open interest in major cryptocurrencies like bitcoin and ether fell alongside these liquidations, although DOGE saw a 2% increase in open interest, suggesting traders were shorting the dip.
Perpetual funding rates for BTC, ETH, XRP, and other tokens turned negative, reflecting rising demand for downside bets. Bitcoin’s 30-day implied volatility (BVIV) jumped from 40% to 47%, signaling increased demand for options as hedges, mirroring a spike in Wall Street’s VIX. On Deribit, puts for bitcoin and ether became more expensive than calls, indicating growing demand for downside protection. Traders also executed bearish strategies like BTC put spreads and neutral strategies like ETH put butterflies.
Token Performance
Among the top 100 cryptocurrencies, only Canton's native token CC rose in the past 24 hours, up 3.35%, while privacy coins such as Monero (XMR), Zcash (ZEC), and Dash (DASH) fell about 5%. Bitcoin dominance fell to 58.73%, suggesting investors are seeking higher returns through speculative altcoins.
One notable altcoin, RIVER, lost 55% of its value since Monday, including a 25% drop in the last 24 hours, following an 884% rally earlier in January. Tokenized silver trading on HyperLiquid also saw volatility, with a $47 million long position liquidated after silver fell to $96.
Authors
Oliver Knight – Co-leader of CoinDesk Data Tokens & Data Team. Former chief reporter at Coin Rivet, bitcoin investor since 2013.
Omkar Godbole – Co-Managing Editor and markets analyst at CoinDesk, specializing in crypto options, futures, and macro activity. Holds a Master’s in Finance, CMT designation, and small holdings in BTC, ETH, BTT, TRON, and DOT.#PreciousMetalsPullBack #GateLiveMiningProgramPublicBeta $BTC ‌$ETH ‌$XRP ‌