In late January, the cryptocurrency market showed clear signs of a correction. Bitcoin's price retreated from its high to around $93,000, with mainstream coins generally under pressure and market sentiment slightly cautious.

From a capital perspective, spot Bitcoin ETFs attracted approximately $1.4 billion this week, marking the best weekly performance since October. This data reflects that institutional investors still have confidence in the long-term outlook. However, the decline in risk appetite triggered a chain reaction in the futures market—large long positions were forced to close, further amplifying short-term volatility.

The total market capitalization of cryptocurrencies slightly increased to about $3.22 trillion, with the overall trend remaining relatively stable. However, signals from the predictive markets warrant attention. On Polymarket, the probability of Bitcoin reaching $100,000 continues to decline, indicating a cooling of market expectations for short-term breakthroughs. Interestingly, new accounts are betting on predictions that Trump will win Greenland in 2027, and such political-economic forecasts are also gaining trading interest.

In terms of sector performance, there is a divergence. GameFi led the decline, with most tokens in the market experiencing short-term drops, but mid- and small-cap tokens like Dusk and Frax recently saw impressive gains, with trading activity significantly increasing, showing that funds are seeking new opportunities. On the application layer, the integration of Pundi AI and Bella Protocol has driven the development of AI trading ecosystems, becoming a new focus of market attention.

Caution is advised as Ethereum's risk index rises, and liquidity changes in exchange-traded funds (ETFs) are also affecting market sentiment. The market is currently in a sensitive phase, and investors should closely monitor the subsequent developments of these indicators.