January 2026 began with a remarkable surge in traditional safe-haven assets, as gold and silver rocketed to fresh all-time highs during the opening weeks .

Bitcoin, often positioned as "digital gold," notably failed to participate in the same explosive upside, remaining well below its prior cycle peaks and showing relative weakness throughout much of the period.

The month concluded on a dramatically different note, however, when a sudden shift in macro conditions including a firmer U.S. dollar, changing expectations around Federal Reserve leadership following President Trump's nomination of Kevin Warsh as chair and widespread profit-taking unleashed one of the most violent risk-off moves in recent memory across both precious metals and cryptocurrencies.

Gold and silver surrendered substantial portions of their earlier gains in just a few sessions toward the end of January, while Bitcoin was pulled lower in the broader sell-off, sliding from mid-to-high $80,000s / low $90,000s levels down toward the low $78,000s region with brief intraday dips into the mid-$70,000s. The entire episode served as a stark reminder of how interconnected yet divergent asset classes can behave when sentiment flips abruptly.

Our positioning remained fully defensive throughout the month: we stayed completely out of the market, prioritizing capital preservation in cash since the turbulence that began back in October 2025.

This conservative approach shielded our portfolio entirely from the late-January bloodbath and once again demonstrated that, during periods of heightened uncertainty and rapid reversals, avoiding exposure is frequently the most prudent and effective strategy available.

Since no positions were initiated or held during January, no PBX tokens will be distributed to participants through the Stayking program.

1. Gold and silver surged to all-time highs early in the month before suffering violent plunges

Precious metals dominated headlines for much of January, fueled by classic safe-haven demand, continued central-bank accumulation , and persistent fears surrounding de-dollarization trends and global economic instability.

Gold broke decisively through the $5,000 barrier and climbed steadily higher, eventually reaching a record peak above $5,594–$5,600 per ounce in late January sessions. Silver exhibited even more explosive momentum, blasting past previous records and touching an all-time high near $121–$122 per ounce amid intense speculative buying and industrial demand expectations.

The euphoria reversed sharply in the final days of the month, however. Gold experienced its steepest single-day decline since 1983, dropping nearly 10% on January 30 from its record high, with intraday moves pushing prices below $5,000 and erasing a significant chunk of the year's advances.

Silver suffered an even more dramatic collapse, plunging as much as 26–36% in single session. Marking one of the worst daily percentage losses on record as leveraged positions unwound rapidly and the narrative of endless upside faltered amid shifting macro winds.

Silver suffered an even more dramatic collapse, plunging as much as 26–36% in single session. Marking one of the worst daily percentage losses on record as leveraged positions unwound rapidly and the narrative of endless upside faltered amid shifting macro winds.

2. Bitcoin remained far from its all-time high and endured a heavy drop amid the broader risk-off move

Unlike the parabolic action seen in physical precious metals, Bitcoin displayed conspicuous underperformance relative to expectations early in January. After briefly reaching highs in the $89,000–$90,000 area mid-month (and touching around $97,000 in some reports earlier in the cycle context), it consistently failed to mount a convincing push toward or beyond its 2025 peak above $126,000, instead consolidating in a relatively narrow range that highlighted its lack of decoupling strength during the safe-haven rush into gold and silver.

When the late-January macro reversal intensified, Bitcoin was swept into the downdraft alongside other risk assets. Prices declined sharply closing the month around $78,000–$79,000 with intraday lows approaching $75,000–$76,000 in volatile sessions. Representing a meaningful drawdown that reflected broader deleveraging pressures and renewed correlation to traditional markets.

Despite its "digital gold" label, Bitcoin failed to act as a diversifying hedge when traditional markets began to crack, instead showing a high positive correlation with equities. This price action suggests that, for the time being, institutional desks still treat Bitcoin as a high-beta technology play rather than a sovereign-grade store of value, at least during moments of acute liquidity stress.

3. Momentum around Bitcoin as a strategic reserve asset continued to build at both federal and state levels

Despite spot-price weakness, the narrative of Bitcoin as a legitimate strategic reserve holding gained further traction during January. At the U.S. federal level, discussions around codifying and expanding the Strategic Bitcoin Reserve (established via earlier executive action) persisted in policy circles, with ongoing evaluations of management frameworks and potential legislative enhancements.

Meanwhile, multiple U.S. states actively advanced or expanded their own initiatives: Texas maintained leadership after its pioneering purchase and reserve framework, while New Hampshire, Arizona, and others pushed bills or planning measures to allocate public funds or unclaimed assets into Bitcoin, signaling growing acceptance of digital assets in public finance strategies.

This steady policy momentum underscores a possbile longer-term shift toward viewing Bitcoin as a diversification tool and hedge, even as near-term price action is relatively weak.

4. Strategy (formerly MicroStrategy) aggressively accumulated Bitcoin even during the market downturn

Strategy continued its signature Bitcoin acquisition strategy without pause, executing several significant purchases throughout January despite deteriorating price conditions. Key transactions included a major $2.125 billion buy of 22,305 BTC around January 20 followed smaller but notable buys like 855 BTC for ~$75 million very late in January / early February.

Right before or amid the heaviest selling pressure. These moves, funded partly through equity sales, reinforced Michael Saylor's long-term conviction and positioned the company to benefit from any eventual recovery at comparatively lower average costs.

MicroStrategy is basically a huge bet on Bitcoin. Not only on price itself but on demand for bitcoin itself.

Bitcoin finished January deeply oversold on higher timeframes, with much of the recent leverage flushed out and market sentiment reaching highly negative levels reminiscent of prior bear phases. https://en.cryptonomist.ch/2026/02/02/bitcoin-price-today-analysis-bearish While painful, such capitulation events could clear the path for healthier recoveries once macro liquidity and risk appetite stabilize.

Our approach stays consistent: preserve capital in cash and focus on regulatory requirements. In environments where even longstanding safe havens experience 20–40% swings in days, disciplined patience remains one of the strongest edges an investor can hold.

All information in this article is for educational and informational purposes only and does not constitute investment advice, recommendation, or solicitation. Probinex bears no responsibility for any decisions made based on this content. Readers should conduct their own research and consult professional advisers before making any financial decisions.