Market Shock: Bitcoin crashes to $88,010 while gold and silver hit record highs

The cryptocurrency market is experiencing a major shake-up. Just like a seismic shock that causes the ground beneath your feet to tremble, investment decisions this week have triggered a wave of volatility spreading across all markets. Bitcoin fell back to $88,010 on Friday, a decline of 2.12% in 24 hours, while investors are fundamentally revising their position strategies. This movement marks a sharp reversal from the bullish sentiment of two weeks ago.

Bitcoin feels the pressure: US investor outflow accelerates

Bitcoin started the US trading session with a rapid correction, tumbling back to the $88,010 range. The decline coincided precisely with a mass retreat of investors from US spot Bitcoin ETFs. In just four trading sessions, more than $1.6 billion in capital has exited the market, according to recent data.

The cumulative returns of Bitcoin during US trading hours were glorious two weeks ago—at that time reaching nine percent for the year. Now, after recent declines, these returns have plummeted to just two percent. This suggests a serious weakening of demand from US institutional investors.

Senior analyst James Van Straten of CoinDesk noted that this shift is not a random correction but a fundamental reorientation of risk dynamics in the market.

Precious metals on the rise: Silver and gold shout for attention

While Bitcoin struggled, the traditional safe-haven landscape told a very different story. Silver reached a historic high of $100 per troy ounce for the first time, marking a new milestone in its long ascent. Gold was close behind, near the $5,000 per ounce threshold, while platinum made a spectacular five percent jump to an all-time high.

Even copper— a metal traditionally linked to economic growth—rose by 2.5%, approaching record levels, suggesting that investors broadly seek refuge in tangible assets. This divergence between crypto and precious metals illustrates a classic risk-off movement where investors reallocate their resources.

Tech stocks and crypto-related companies tumble

The crypto connection to the stock market was also visible in the results. Coinbase (COIN) lost 2.6%, while MicroStrategy (MSTR) declined 1.2%. Bitcoin mining companies like Riot Platforms (RIOT) and Marathon Digital Holdings (MARA) both recorded losses of two percent, aligning with the broader downturn in crypto sentiment.

This decline in crypto stocks meanwhile unfolded on the Nasdaq, which despite initial losses, recovered to end the day up 0.4%. Intel (INTC), on the other hand, made a dramatic plunge of 15% after the company issued somewhat disappointing outlooks for Q1, despite strong Q4 earnings. Limitations in AI chip production were a critical factor.

Greece effect and intensified global market dynamics

Today’s volatility—with fluctuations resembling an earthquake—reflects a larger pattern of global unrest. Although direct links to market situations in Greece are not clear, the current market dynamics illustrate how vulnerable global assets are to shifts in risk appetite. Investors worldwide, from Greece to the US, are adjusting their exposure to shaken markets.

Desk strategist Jasper De Maere of the crypto trading house Wintermute noted a significant increase in stablecoin redemptions back into fiat currency. This suggests that institutional players—including those from Europe—who entered the market aggressively earlier this year are now cautiously reducing their positions.

NFTs and token ecosystems show resilience despite turbulence

Amid all these market shocks, one corner of the crypto economy demonstrates remarkable resilience: NFT ecosystems. Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, transforming from speculative “digital luxury goods” into a multi-vertical consumer platform.

Pudgy Penguins’ strategy is intriguing: first attracting users through traditional channels—toys, retail partners, viral media—and then building these groups in Web3 via games, NFTs, and the PENGU token. The ecosystem now includes over $13 million in retail sales, 1 million physical units sold, gaming experiences like Pudgy Party (500k downloads in two weeks), and a widely distributed token (airdropped to over 6 million wallets).

Optimism (OP), currently priced at $0.28, has also received approval from its community for a 12-month plan. About half of the Superchain revenues will be allocated to OP token buyback programs starting in February. Despite this, the token price remains under pressure, consistent with the broader melting away of risk assets.

The CoinDesk 20 index declined along with Bitcoin, while crypto derivatives showed decreasing open interest and a growing preference for protective puts. The market signals caution across the board, a warning that today’s volatility—a true sentiment earthquake—may not be over yet.