3 Minutes
Market overview: crypto dips as commodity prices surge
The cryptocurrency market slid sharply on January 29 as Bitcoin, Ethereum and most major altcoins turned red. Total crypto market capitalization fell to just above $2.8 trillion after Bitcoin dropped from a year-to-date peak, while commodity markets—gold and crude oil—registered notable gains amid heightened geopolitical risk.
Key price moves
Bitcoin fell to about $87,000 from the 2026 high near $94,000, while Ethereum traded around $2,930 and Binance Coin dipped toward $890. Several mid- and small-cap tokens led losses: Chiliz, River, Render, Mantle and LayerZero each slid more than 7% in the 24-hour window. The sell-off reinforced the narrative that cryptocurrencies are still vulnerable to risk-off flows when geopolitical uncertainty rises.
Crude oil and gold prices have soared
Why commodities rallied
Safe-haven and risk-sensitivity dynamics drove the divergence: gold rallied on fresh ETF inflows and forecasts from some analysts projecting long-term upside for the metal, while Brent crude climbed above $70 per barrel for the first time in months after a near 20% rebound from this year’s lows. Rising commodity prices reflected traders pricing in supply worries and a greater probability of regional conflict.
Geopolitical flashpoint: Iran
Markets reacted to an increase in the perceived likelihood of a US strike on Iran. Prediction markets such as Polymarket indicated more than 70% odds that President Donald Trump might order an attack before year-end. Public statements from the US and Iran, including threats of retaliation, amplified concerns over energy disruption and a possible escalation in the Middle East—factors that typically push oil and gold higher.
What this means for crypto investors
The episode underscores that Bitcoin and other cryptocurrencies are not yet consistently behaving as safe-haven assets. During past episodes of heightened risk—tariff announcements, trade tensions and threats of military action—crypto has often experienced sharp sell-offs as investors flee to traditional safe havens like gold or the Swiss franc. The current moves are a reminder that macro and geopolitical events remain key drivers for crypto price action.
Short-term outlook
Traders will be watching three things closely: official developments on Iran, trends in oil and gold prices, and any shifts in US fiscal negotiations that could affect market sentiment. Domestic political debates—such as the ongoing spending talks in Washington—could also add volatility if they threaten government operations or economic policy clarity. For portfolio managers and retail traders, risk management and liquidity planning remain essential while macro uncertainty persists.
Overall, the market reaction on January 29 highlights the continuing interplay between geopolitics, commodity markets and crypto prices, with investors relying on cross-asset signals to reposition exposures during turbulent stretches.
Source: crypto
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