Bitcoin and ether traded in narrow ranges on Friday as softer U.S. equity futures reinforced a risk-off mood across global markets, while a handful of altcoins outperformed in thin liquidity conditions.
Bitcoin hovered near $88,950, showing little directional conviction, while ether slipped about 1% since midnight UTC to trade around $2,920. The muted performance mirrored declines in U.S. stock index futures, with Nasdaq 100 futures down roughly 0.4% and S&P 500 futures lower by about 0.25%.
Risk aversion was more evident in traditional safe havens. Gold and silver extended rallies to fresh record highs this week as investors rotated into defensive assets. The cautious sentiment comes as markets digest the first trilateral talks between Ukraine, Russia and the United States, with limited expectations for a near-term breakthrough in the conflict.
Despite broader weakness, pockets of the altcoin market showed resilience. LayerZero’s ZRO token climbed 12% over the past 24 hours as traders positioned ahead of a major protocol upgrade scheduled for early February. Tron’s TRX and Dash also advanced by around 3%, with low liquidity amplifying price moves.
Derivatives positioning
More than $200 million in crypto futures positions were liquidated over the past 24 hours, with long positions accounting for the majority of losses. The trend has persisted throughout the week as declining prices caught bullish traders off guard.
Bitcoin’s 30-day annualized implied volatility index (BVIV) slipped back to 40%, reversing a brief rise to 44% earlier in the week. The decline points to continued appetite for volatility-selling strategies, including covered calls.
Ether stood out as the only top-10 cryptocurrency to see a modest increase in futures open interest over the past day. Other major tokens, including bitcoin, XRP and solana, recorded capital outflows from derivatives markets. Open interest–adjusted cumulative volume delta data showed net buying in TRX, ZEC and BCH, while bitcoin and several other assets saw net selling.
Options markets signaled greater caution around ether. On Deribit, short-dated ETH put options were priced higher than comparable BTC puts, suggesting relatively more bearish positioning on Ethereum. Block trading activity showed demand for BTC straddles, a volatility-focused bet, alongside ETH put spreads.
Token talk
The “altcoin season” indicator edged higher to 29 out of 100 from 24 a week earlier, indicating traders continue to hunt for returns in an otherwise rangebound market. The bitcoin-heavy CoinDesk 20 Index fell about 0.6% since midnight UTC, while memecoin, DeFi and metaverse sector indexes posted modest gains.
Liquidity remains a key constraint across the altcoin space. For example, the 2% market depth for TON sits between roughly $580,000 and $700,000, meaning relatively small orders can move the token’s $3.7 billion market capitalization by 2%. While this heightens volatility, it also leaves scope for exaggerated upside moves if broader market sentiment improves due to thin sell-side order books.
Metaverse tokens continue to lead sector performance in 2025. The CoinDesk Metaverse Select Index is up about 50% since Jan. 1, supported by gains in Axie Infinity and The Sandbox.
