Global markets faced sharp losses after a rapid sell-off erased trillions in value within hours. Gold futures fell $300 per ounce in two hours, while crypto and equity markets declined together. This drop pushed gold through the $5,200 level, near the $5,100 region.
Volatility returned to levels last seen during the 2008 financial crisis. Analyst Foxy posted on X that roughly $5.4 trillion in notional value disappeared from global balance sheets in about 60 minutes, pointing to a synchronized margin call.
Gold futures moved lower at unusual speed as prices sliced through key levels. The metal dropped from near $5,625 to around $5,100 in minutes. Volatility metrics climbed to levels seen during the global financial crisis, indicating forced selling rather than a gradual price adjustment. Before the sell-off, gold had gained about 90% year-over-year. Silver had risen roughly 270% over twelve months before falling nearly 12% during the same window.
Crypto markets followed a similar pattern as prices fell across major tokens. Bitcoin dropped 6.25% to $80,477, with spot trading volume reaching $58.53 billion. Derivatives trading rose sharply to $110.52 billion; liquidations totaled $770.71 million as selling pressure spread across exchanges.
Ethereum fell 7.20% to $2,736 with $416.44 million liquidated. Solana slid 7.09% to $114, while XRP fell 6.87% to $1.74.
U.S. equity futures weakened during the sell-off. S&P 500 futures fell 0.3%, Nasdaq 100 futures dropped 0.3%, and Dow futures declined 139 points. According to SoSoValue on X, geopolitical tensions fueled risk-off sentiment. Bitcoin briefly touched about $82,000, its lowest level of 2026.
Bitcoin spot ETFs recorded consecutive monthly outflows. January 2026 saw $1.10 billion leave funds, following $1.09 billion in December and $3.48 billion in November. Total redemptions reached $5.67 billion over three months. ETF assets fell from $152.01 billion in July 2025 to $107.65 billion, marking a 29% decline.
Foxy noted that gold and technology stocks fell together, which often signals margin-driven selling. Assets that usually hedge each other moved lower at the same time.
The combined losses erased nearly twice the value of the entire crypto market in a short period. The pace of declines matched the speed of forced deleveraging. Is this move signaling a turning point between traditional gold and digital assets as markets adjust to tighter liquidity?
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Markets saw a sharp synchronized sell-off as gold futures fell $300 in hours and crypto prices dropped amid heavy liquidations. Equity futures also weakened while ETF outflows deepened. These moves reflected forced selling during a global margin call. Investors now watch volatility and liquidity signals closely.