Global markets stayed on the defensive on Thursday as a sharp U.S. software sell-off, renewed pressure on crypto, and falling commodity prices met easing U.S.–China and U.S.–Iran tensions.
Crypto
Crypto is under steady selling pressure, dragging total market capitalization down to about $2.4 trillion, roughly a quarter below last month’s high, with Bitcoin dominance around 59%.
Market sentiment gauges are flashing red, with the Crypto Fear & Greed Index at 11 (extreme fear), the Altcoin Season Index at 29, and the Average Crypto RSI at 37.77, indicating an oversold market.
Bitcoin trades around $70,000, down almost 3% on the day and close to the lowest level since late 2024. Ether is around $2,100, down about 2%, while Solana trades near $91 and Binance Coin around $694.
Spot Bitcoin ETFs are amplifying the move, with roughly $545 million of net outflows on 4 February alone and about $373 million coming out of BlackRock’s IBIT. Other funds such as GBTC, FBTC, and ARKB also saw redemptions, keeping the past few days firmly negative.
Commodities
Commodities are in broad retreat as geopolitical tensions unwind. Silver, which recently traded above $120 an ounce, has dropped back into the mid-70s to low-80s after another double-digit fall, as overleveraged long positions are forced to exit.
Gold has slipped to just under $4,900 an ounce, about 2% lower on the day, as investors take profit and the stronger dollar rises.
Oil is also weaker, with WTI sitting near $64 a barrel and Brent around $68, both down about 2%, after news that Washington and Tehran will hold talks in Oman and that tensions between the United States and China have cooled.
Stock Market Indices
In the U.S, the S&P 500 is down about 0.5% near 6,883, and the Nasdaq is off roughly 1.6% around 22,900 as growth and software names are hit, while the Dow Jones manages a small gain near 49,500 as money shifts into value, energy, and industrials.
The software and services segment has fallen about 13% in a week and roughly 25% from its late-October peak, erasing more than $800 billion in market value and forcing investors to rethink which companies actually benefit from AI.
In Asia, Japan’s Nikkei 225 is down about 0.9% at roughly 53,818, while in Europe, London’s FTSE 100 is off around 0.2% near 10,378, underscoring the cautious global tone.
Geopolitics & Market Sentiment
On the diplomatic front, a recent call between U.S. and Chinese leaders and the decision to resume talks between the U.S. and Iran have reduced the immediate risk of a wider conflict, helping remove some of the dangers surrounding oil and precious metals.
A secondary focus is the India–U.S. trade deal, expected to be formally signed in March, which should lower tariffs on both sides and give trade sentiment a small boost.
On the economic front, markets are adjusting to the nomination of Kevin Warsh as the next Fed chair, a choice seen as favoring a smaller balance sheet and tighter liquidity.
The 10-year Treasury yield is holding around 4.27%, and the dollar index is near recent highs as traders wait for decisions from the Bank of England and the European Central Bank, where rates are expected to stay on hold.
