The crypto market is facing a critical stress test as Bitcoin and Ethereum lose ground, signaling a broader shift in global risk appetite. After weeks of choppy consolidation, downside pressure is intensifying, and traders are watching closely to see whether this move develops into a deeper correction or stabilizes into a new base. At the same time, capital flows are becoming more selective, with crypto struggling to attract conviction while money rotates toward assets perceived as more stable in the current macro environment.

The global risk map is being redrawn. What feels like an earthquake in financial markets is revealing a historic capital migration—one that is actively reshaping what investors define as safety versus danger. While the traditional pillars of the US economy show visible strain and the dollar’s dominance as an unquestioned refuge begins to weaken, the market’s response has not been a rush into digital alternatives. Instead, the immediate bid has been distinctly traditional.

Gold and silver are now commanding attention as the primary destinations for defensive capital. Their record-breaking rallies reflect more than speculation—they represent a renewed demand for tangible, scarce assets in an environment where confidence is being tested. Meanwhile, US equities continue absorbing liquidity on the strength of structural demand and benchmark allocation, leaving crypto caught in the middle.

As metals surge and crypto cools, the message is clear: in today’s market, the safe-haven trade is wearing a metallic face.

Capital Rotates To Metals As Crypto Turns Into The Risk Asset Again

A CryptoQuant report argues that current market flows reflect a desperate search for solid ground, and the numbers highlight how sharply investor behavior is shifting. Silver has broken its historical barrier, surging to $100 per troy ounce, while gold continues its vertical climb toward the $5,000 milestone, trading near $4.9K after posting a weekly gain of almost 8%. This type of synchronized breakout across precious metals signals a powerful flight-to-safety impulse, especially at a time when investors are questioning the stability of traditional macro anchors.

CryptoQuant notes that the US dollar is also under pressure, experiencing its steepest weekly devaluation since May of last year, when markets were still adjusting to the shock from Donald Trump’s extreme tariff hike in April. The timing is not random. When confidence in the dollar weakens, part of that capital often rotates into gold first, reinforcing metals as the default refuge.

The crypto side of the equation tells a different story. The flight is selective: US Bitcoin ETFs recorded $1.33 billion in weekly outflows, the largest since February 2025. Yet Bitcoin has not collapsed, supported by miner resilience as they remain in a zone of operational neutrality. The conclusion is clear: in the short term, capital is prioritizing the classic refuge over innovative risk.

CryptoQuant frames this as a paradigm inversion—money is no longer defaulting to Treasuries, but to metals, even as volatility risk in gold and silver rises.

Bitcoin Weekly Structure Tests Key Support

Bitcoin is trading around $87,900 on the weekly chart, attempting to stabilize after a sharp corrective leg that followed the late-2025 peak. The market has shifted from expansion to consolidation, with BTC struggling to regain momentum after breaking down from the $100K region. While price has not collapsed into a full capitulation phase, the weekly structure shows that sellers remain active on rallies and buyers are increasingly forced to defend key levels.

From a trend standpoint, BTC is now compressed between major moving averages. The 50-period moving average (blue) is still above price near $101,000, acting as strong overhead resistance and marking the level the market must reclaim to restore bullish momentum. Meanwhile, the 100-period moving average (green) is rising toward price near $87,500, becoming a critical dynamic support zone. As long as BTC holds above this rising trend reference, the pullback can still be interpreted as a corrective phase within a broader uptrend rather than a full structural breakdown.

The 200-period moving average (red) continues to slope upward far below price near $58,000, highlighting that long-term trend conditions remain positive despite the current volatility. Volume has been elevated during the recent selloff compared to prior weeks, reflecting forced deleveraging and defensive positioning.

For bulls, the key objective is reclaiming $90K and building acceptance above that level. If support fails near the green average, downside risk opens toward the low-$80K range before the market finds stronger demand.

Featured image from ChatGPT, chart from TradingView.com 

A large investor shifted funds into tokenized gold this week, and Bitcoin felt the impact. Prices dipped while a whale quietly bought millions in XAUT, a gold-backed token, signaling a short-term move toward traditional hedges.

Whales Move Into Tokenized Gold

According to on-chain trackers, one address moved $1.53 million in USDC into Hyperliquid to buy XAUT. Reports note that the same wallet had earlier bought about 481 XAUT, a purchase worth roughly $2.38 million.

The address still holds close to $1.44 million in USDC, which suggests more purchases could follow. These moves were picked up on public blockchains and then flagged by analysts watching large transfers.

This kind of action can matter. When big players shuffle cash, smaller traders often take notice and hedge their bets. The shift is not proof of a long-term trend, but it shows that, at least for now, some large holders prefer gold exposure over extra crypto risk.

Whales are buying gold, not crypto.

~30 mins ago, whale 0x6B99 deposited 1.53M $USDC into Hyperliquid to buy $XAUT again.

He has already bought 481.6 $XAUT($2.38M) and still holds 1.44M $USDC, which may be used to buy more $XAUT.https://t.co/0uV2kNEiD0 pic.twitter.com/rYA09b1OEn

— Lookonchain (@lookonchain) January 23, 2026

Gold And Silver Hit Fresh Highs

Reports say gold has been moving sharply higher, with spot prices climbing close to $5,000 per ounce in global trading this week. Silver also rose above $100 per ounce, with intraday gold prints near $4,988 before settling.

Traders tie the surge to geopolitical tensions and the idea that interest rates may ease, which encourages money into metal-based stores of value.

A weaker dollar has also helped. Market chatter points to increased demand as investors seek steadier places to park capital while global politics and policy choices create more worry.

Bitcoin’s Price Action And Market Mood

Bitcoin traded around $88,653 at one stage, slipping about 1% on the day and nearly 30% below its prior cycle top. That gap is large. It has market participants questioning whether BTC will stay the go-to hedge during times of high stress. Some long-term holders remain confident. Others are watching liquidity and macro signals more closely.

Reports have disclosed renewed criticism from economist Peter Schiff, who argued that Bitcoin has underperformed versus gold since 2021.

He highlighted the opportunity cost for investors holding BTC while metals climb to record prices. Schiff wrote on social platforms that precious metals are outperforming and that this weak run for Bitcoin weakens its role as a store of value in the eyes of some.

What This Means For Crypto Investors

Short-term rotations like this often reflect risk preferences rather than permanent shifts. Some funds and wealthy individuals seek lower-volatility assets when headlines grow louder and policy paths look uncertain.

Others still view Bitcoin as a long-term play tied to scarcity and network effects. The current picture is a mix: metals are strong, tokenized gold is drawing attention, and crypto markets are reacting.

Featured image from Pexels, chart from TradingView