Altcoins seek recovery as Bitcoin slows down under defensive pressure

The week closed with Bitcoin oscillating around US$ 88,000 and Ethereum retreating 1%, while the crypto market aligns with the global pessimism of U.S. equities. The Nasdaq 100 and S&P 500 indices recorded declines of 0.4% and 0.25%, respectively, creating a hostile environment for risk assets. In the same context, gold and silver reached historic levels — a movement that reveals investors’ dilemma: protect wealth or seek gains in altcoins remains the big question.

Defensive retreat reflects geopolitical tensions

The risk aversion scenario gained strength after trilateral talks between Ukraine, Russia, and the United States, with investors seemingly lacking hope for a near-term resolution. This sentiment pushed precious metals to all-time highs, while cryptocurrencies suffer the consequences. The latest data show Bitcoin at US$ 88,310, down 0.83% in the last 24 hours, while Ethereum fell to US$ 2,960, retreating 1.56% in the same period.

Derivative positioning highlights traders’ focus on altcoins

Over US$ 200 million in futures contracts were liquidated in 24 hours, with long positions absorbing the impact. The 30-day implied volatility index for Bitcoin (BVIV) fell to 40%, signaling that investors continue selling volatility through defensive strategies like covered calls.

The altcoin sector, in turn, shows a different dynamic. Ethereum is the only among the top 10 tokens that captured capital inflow in futures in the last 24 hours, while Bitcoin, XRP, Solana, and others recorded outflows. On Deribit, short-term put options for Ethereum are priced above those for Bitcoin — a clear sign that traders distrust Ethereum more in this window.

Derivative flows of Tron (TRX), ZCash (ZEC), and Bitcoin Cash (BCH) indicate net buying, suggesting that some altcoin segments resist the defensive wave. However, markets like Tron also see outflows in open interest, reflecting widespread uncertainty.

Which altcoins gain ground this week?

LayerZero (ZRO) was highlighted with anticipation of an important update scheduled for early February, although recent data show -12.52% in the last 24 hours — a reflection of profit-taking. Tron (TRX) remains stable with +0.35% in 24 hours, while Dash (DASH) retreats 9.69%, indicating very specific market selection.

The “altcoin season” indicator rose to 29/100, up from 24/100 — a sign that traders are trying to extract gains from a market that, otherwise, remains contained. However, liquidity remains the biggest obstacle. Assets like The Open Network (TON), valued at US$ 1.51, face a market depth of only 2% between US$ 580,000 and US$ 700,000. This means a large order could move the market by 2% easily — amplifying both gains and losses.

Specific altcoin sectors lead: NFT and metaverse in focus

While most altcoins suffer, metaverse tokens continue on a positive trajectory, with the CoinDesk Metaverse Select Index (MTVS) recording a 50% gain since January 1. Axie Infinity (AXS) shows -13.07% in 24 hours after a strong previous rally, while The Sandbox (SAND) remains at US$ 0.12.

Pudgy Penguins emerges as one of the strongest NFT brands this season, transitioning from a “luxury digital asset” speculative project to a multi-vertical intellectual property platform. The strategy includes acquiring users via conventional channels (toys, retail partnerships), followed by migration to Web3 (games, NFTs, PENGU token). The ecosystem already accounts for over US$ 13 million in physical product sales and more than 1 million units distributed. The market prices Pudgy at a premium compared to traditional intellectual property peers, but sustainability depends on expanding retail execution, gaming adoption, and token utility.

The reflection of AI on risk markets

Microsoft and Meta’s quarterly results signaled no slowdown in AI spending. Microsoft highlighted that AI is now one of its largest businesses with a prolonged growth outlook. Meta projected a sharp increase in capital expenditures for 2026, dedicated to Meta Super Intelligence Labs — a context that reinforces the thesis that technology will continue absorbing capital, potentially benefiting infrastructure and Web3-linked altcoins.

The final message is clear: while Bitcoin remains in a defensive zone and altcoins face structural liquidity issues, specific opportunities emerge in particular sectors — NFTs, gaming, and the metaverse lead the narrative. The altcoin market remains fragmented, requiring very careful selection by investors.