Risk-off sentiment dominated global markets on Friday as an AI-driven sell-off in tech stocks, sharp swings in gold and silver, and only a small crypto rebound unfolded alongside rising Middle East and nuclear tensions.
Crypto
The total crypto market cap is about $2.26 trillion, down roughly 6% over the last day after Thursday’s heavy sell-off.
Crypto is trading in fear mode, with the Fear & Greed Index flashing ‘extreme fear,’ the Altcoin Season Index at 22/100, and the Average RSI at about 38.”
Bitcoin has bounced to around $66,100, up more than 5% from its earlier dip to $60,000 overnight. Ethereum trades near $1,930 and Solana around $81, both up about 5–6% on the day after steep intraday drops.
Spot Bitcoin ETFs have seen outflows for two days in a row, with 5,900 BTC leaving on Feb. 5 and around 7,200 BTC the day before.
IBIT alone lost roughly 7,300 BTC over those sessions, showing investors are de-risking even though ETFs remain a key on-ramp for traditional money.
Commodities
WTI crude trades just above $63 a barrel, slightly higher on the day but still near the bottom of its recent range, while Brent is around $68 after a 1% gain.
Precious metals are trying to stabilize after a sharp sell-off, with gold recovering about 1.5–2%, reaching $4,900, while silver is up nearly 5%, at $74, after falling to $65.
Stock Market Indices
U.S. stocks remain under pressure, with the S&P 500 down about 1.2%, the Dow down 1.2%, and the Nasdaq lower by 1.6%.
Outside the U.S., Japan’s Nikkei 225 stands out, up about 1.7% ahead of Sunday’s election, while the UK’s FTSE 100 is up around 0.6% on support from value and energy stocks.
Geopolitics & Market Sentiment
On the diplomatic front, indirect talks between Iran and the United States in Oman over Tehran’s nuclear program are taking place. However, the large U.S. naval presence in the region keeps markets on edge.
Separately, Washington is pushing for a new, broader arms-control deal after the START treaty expired, aiming to bring China into future talks even as Beijing resists, adding to long-term strategic uncertainty.
On the economic front, the cost of the AI expansion is now a key concern, as big U.S. tech companies plan to spend about $600 billion on AI this year, and that level of spending is making equity investors nervous.
At the same time, weak layoff data and softer risk assets have pushed Fed funds futures to expect about a 20% chance of a March rate cut, up from roughly 10% a day earlier.
Traders are now waiting for upcoming labor and inflation data and are watching whether the AI and crypto sell-off continues.
