Crypto markets remained under heavy pressure into Friday morning, extending Thursday’s sharp selloff as total market capitalization declined 5.4% to $2.89T as of 06:00 ET. The move followed a 4.9% drawdown at Thursday’s 18:00 ET close, signaling persistent risk aversion and ongoing deleveraging across digital assets. Price action suggests the market is transitioning from January’s momentum-driven advance into a broader corrective phase, with selling pressure accelerating overnight rather than stabilizing. Liquidity conditions remain fragile, and the absence of meaningful dip-buying indicates investors continue to prioritize capital preservation over tactical re-risking.
Losses were broad-based across Layer-1 assets, reinforcing the view that downside pressure is macro and positioning-driven rather than token-specific. Bitcoin declined 6.0% to $82,521, pushing its two-day pullback to over 7%, while Ethereum fell 7.3% to $2,727 as smart-contract platforms underperformed. Solana, BNB, Cardano, Avalanche, and Polkadot all posted declines in the 5–7% range, reflecting synchronized weakness across high-beta networks. The uniformity of the selloff suggests systematic unwinds and reduced leverage rather than a fundamental reassessment of individual protocols.
DeFi continued to act as a source of downside volatility, with leading protocols extending losses from the prior session. Uniswap dropped nearly 10% to $4.22, while Aave fell 8.8% to $140.83, bringing both assets into double-digit declines on a weekly basis. Chainlink and Cronos also traded lower, reinforcing the rotation away from protocol exposure amid declining risk tolerance. Hyperliquid stood out on a relative basis, maintaining a 7-day gain of over 40% despite an 8% daily pullback, pointing to profit-taking following outsized recent performance rather than outright capitulation.
Higher-beta segments such as Metaverse and gaming-linked tokens continued to lag, extending steep weekly drawdowns and underscoring the market’s defensive posture. Internet Computer, The Sandbox, and Axie Infinity all moved lower, while trading volumes remained subdued, suggesting limited speculative participation. Canton (CC) was one of the few assets showing relative strength, posting modest gains and remaining positive on a multi-day basis, though isolated strength has not yet translated into broader sector stabilization.
Overall, market conditions remain fragile as investors assess whether current price levels can attract sustained inflows. With volatility elevated and downside momentum intact, near-term performance is likely to remain headline- and flows-driven, particularly around Bitcoin and Ethereum, which continue to anchor broader sentiment. A period of consolidation may be required before risk appetite returns, with market participants closely monitoring whether selling pressure begins to decelerate into the weekend.
Jan. 30, 2026
Trading Update as of 06:00ET: Total Market Cap (5.4%) to $2.89T
