Cryptocurrency market in total price under pressure: Defensive sentiment dominates as safe-haven capital flows into gold

The current total price of cryptocurrencies reflects a cautious market stance, with Bitcoin hovering around $88,000 and Ethereum losing over 1.5% on Tuesday to $2,950. This subdued performance follows the weak performance of US stock indices — the Nasdaq 100 and S&P 500 futures declined by 0.4% and 0.25% respectively — indicating that risk-averse investors have tightened their positions. The market shows typical signs of defensive positioning, with institutions shifting capital to safe havens rather than growth assets.

Geopolitical uncertainty drives traditional safe havens higher

The most notable phenomenon in the total price movement is the swelling demand for gold and silver, both reaching new highs this week. This defensive sentiment is directly related to the trilateral talks between Ukraine, Russia, and the US on Friday. The negotiations do not seem to have led to optimism — on the contrary, investors are responding cautiously by shifting their positions into traditional stores of value.

This flight to safety is also reflected in the subdued attitude toward risk assets. Where normally growth-oriented capital flows into growth sectors, the current market prefers stability. This has direct consequences for the total crypto price, which is sensitive to broad economic risk sentiment.

Altcoins show first signs of counterpressure

Despite the broader market malaise, the altcoin sector shows interesting upward movements. The LayerZero ZRO token recorded a modest change of -3.78% in 24 hours, although traders previously expressed optimism about a major upgrade scheduled for early February. TRX traded in the green with a modest gain of 0.62%, while DASH recorded a stronger loss of -8.71%.

The remarkable aspect here is that despite the total price being under pressure, specific altcoins are trying to break through. However, this dynamic is severely hindered by chronically low liquidity in many segments. An order between $580,000 and $700,000 would only cause a 2% movement in the $3.7 billion TON market — a sign of how fragile the order book of many altcoins is.

The glass-half-full scenario is that this illiquidity also works in both directions. When the broader market finally begins to rally, altcoins could benefit from exaggerated gains, simply because sell orders thin out the order book.

Derivatives market reflects cautious stance

The total price movements are most finely expressed in the derivatives markets. Over $200 million in futures positions have been liquidated in the past 24 hours, with long positions (bullish bets) being hit hardest. This pattern has continued since the beginning of the week, when price declines surprised unwary bulls.

The 30-day implied volatility index of Bitcoin (BVIV) has stabilized at 40%, after spiking to 44 earlier this week. This decline suggests that investors remain willing to bear risk through strategies like covered calls — another indication that risk-averse sentiment is driving the total price.

On Deribit, short and short-term put options on Ethereum carry higher premiums than those on Bitcoin, indicating traders are more pessimistic about Ethereum’s price in the near future. This divergence between the two largest cryptocurrencies is significant: while Bitcoin seeks stability, Ethereum carries more recession risk.

Sector-specific momentum despite overall headwinds

While the total price remains under pressure, certain segments show remarkable strength. The “altcoin season” indicator rose to 29/100 from 24/100 earlier, as traders try to profit from the remaining calm in the market. The Bitcoin-dominated CoinDesk 20 Index lost only 0.6%, but meme coins, DeFi, and metaverse indicators all remained in the green.

The metaverse sector continues to be the strongest performer of the year, with the CoinDesk Metaverse Select Index recording a 50% gain since January. Axie Infinity (AXS) traded around $2.24 with strong performance, while The Sandbox (SAND) was at $0.12.

Meanwhile, Pudgy Penguins is opening a new tactic in the NFT domain. The project is evolving from speculative “digital luxury goods” to a multi-vertical consumer brand. The strategy focuses on attracting users through mainstream channels — toys, retail partners, and viral media — then onboarding these users into Web3 via games, NFTs, and the PENGU token (currently around $0.01). The ecosystem now accounts for more than $13 million in retail sales and over 1 million units sold, with games already reaching 500,000+ downloads.

XRP shows contradiction between price action and institutional confidence

XRP traded with a loss of -1.93% in 24 hours, part of the broader total price pressure. However, underlying metrics tell a different story. US-listed spot XRP ETFs have attracted $91.72 million in net inflows this month — a notable turnaround compared to the ongoing outflows from Bitcoin ETFs.

This divergence suggests that despite short-term price volatility, institutional investors are building their XRP exposure, possibly awaiting positive regulatory developments or operational breakthroughs.

The total crypto market price is thus driven by multiple conflicting forces: defensive pressure from broad macro uncertainty, fragmentary strength from specific segments, and institutions using dips to build positions.