Markets opened the week mixed as thin liquidity, a firmer U.S. dollar, and cautious optimism over U.S.–Iran nuclear talks pulled safe-haven flows out of gold while equities drifted sideways and crypto struggled under extreme fear conditions.
Crypto
The total crypto market cap stands at $2.33T, down 1.15%, with the Fear & Greed Index at 13 signaling extreme fear, the Altcoin Season Index at 29 highlighting firm Bitcoin dominance, and an average crypto RSI near 49.6 pointing to broadly neutral momentum.
Bitcoin trades at $68,024, down 1.33% on the day and 1.38% on the week, while Ethereum holds near $1,973 and Solana at $85.82, extending its multi-day slide.
ETF flows remain the market’s backbone, with cumulative inflows at +$54.69B and today’s net figure at +$15.10M, supported by modest allocations into FBTC, HODL, and BTCW.
Commodities
Oil trades firmer, with Brent around $68.32 and WTI at $63.01, as the market weighs the risk surrounding Iran’s naval drills in the Strait of Hormuz against the possibility that talks in Geneva may ease tensions.
Gold, meanwhile, suffered a sharp reversal, with spot gold falling over 2% to $4,917 per ounce, its lowest level in nearly two weeks, with a stronger dollar, thinning global liquidity due to Lunar New Year closures, and a mild easing in geopolitical tension driving the retreat.
Stock Market Indices
U.S. equity futures are muted, with the S&P 500 at 6,836, up 0.05%; the Dow at 49,500, up 0.10%; and the Nasdaq at 22,546, down 0.22%, while in Europe the tone is softer, with EuroStoxx 50 futures down 0.35% and the FTSE outperforming at 0.58% on support from commodity-linked names.
Asia traded quietly as most major markets closed for Lunar New Year, with Japan’s Nikkei edging up 0.30% as sentiment stayed restrained following weaker GDP data and a firmer yen, which recovered Monday’s losses as expectations for fiscal expansion under Prime Minister Takaichi continued to reshape capital flows into Japan.
Geopolitics & Market Sentiment
On the diplomatic front, U.S.–Iran nuclear talks in Geneva began amid heightened military tension, with President Trump saying he will be involved indirectly and insisting Tehran wants a deal, even as Washington positions a large naval force in the region and Iran conducts drills in the Strait of Hormuz, underscoring how easily a misstep could send oil sharply higher.
A secondary flashpoint emerged in Europe after Russia warned it may deploy its navy to prevent Western nations from seizing Russian vessels, raising fresh security concerns.
On the economic front, the dollar is firm ahead of Wednesday’s FOMC minutes and Friday’s U.S. GDP release, with markets still pricing the first Fed rate cut in June. Meanwhile, UK labor data showed unemployment rising to a five-year high, adding pressure on the Bank of England to ease sooner.
Investors enter the week cautiously, awaiting signals on global diplomacy, the central bank’s path, and whether risk appetite can stabilize after a period of tech weakness and renewed safe-haven demand.
