Global markets shifted sharply into risk-off mode as President Trump announced proposed 10 per cent tariffs on eight European countries that opposed US plans regarding Greenland. The move reignited trade-war anxieties, triggering a broad retreat from risk assets and sending haven assets to new highs.
US equity index futures reflected the unease, with the S&P 500 down 0.9 per cent and the Nasdaq 100 falling 1.1 per cent. European stock futures dropped 1.2 per cent, while most Asian markets followed suit except China, where equities rose 0.3 per cent after official data confirmed the economy grew by five per cent in 2025, meeting its annual target despite a fourth-quarter slowdown.
The flight to safety propelled gold to a record US$4,635.88 per ounce, up 0.9 per cent, while silver also surged. In contrast, oil prices declined as geopolitical tensions around Iran eased. Currency markets mirrored the shift in sentiment, with the US dollar weakening broadly. The euro climbed 0.3 per cent to US$1.1627, and the Japanese yen strengthened to 157.66 per dollar. Cryptocurrencies did not escape the selloff. Bitcoin plunged 3.2 per cent to US$92,310.23, and the broader crypto market shed 2.9 per cent over the past 24 hours.
Three interlocking forces drove this downturn.
First, renewed US–EU trade tensions created immediate policy uncertainty. With US cash markets closed for Martin Luther King Jr. Day, futures bore the brunt of investor anxiety, and crypto, which often correlates with tech-heavy equities, got caught in the downdraft. The threat of retaliatory tariffs by February 1, coupled with a 54.5 per cent probability of a formal US move on Greenland according to prediction markets, kept volatility elevated.
Second, excessive leverage in crypto markets turned a modest dip into a cascade. As Bitcoin broke below US$92,000, over US$357 million in leveraged long positions were liquidated within an hour, contributing to total crypto liquidations of US$865 million. Open interest stood at US$645 billion, up nearly 20 per cent recently, signalling crowded bullish positioning. Negative funding rates of –0.000255 per cent further revealed that longs were paying shorts to stay in the market, a classic sign of overheated optimism vulnerable to reversal.
Third, technical breakdowns accelerated the decline. Bitcoin’s failure to hold the US$95,000 support level triggered algorithmic sell orders and panic among retail traders. The global crypto market cap fell below its 30-day exponential moving average of US$3.12 trillion, and the RSI dipped to 41.8, indicating waning momentum. Altcoins suffered disproportionately, with Solana down 10.63 per cent and Filecoin sliding 10.86 per cent. Among the top 50 assets, Aster posted one of the steepest losses, dropping more than 15 per cent.
Despite these headwinds, underlying fundamentals in parts of the crypto ecosystem remain robust. Ethereum continues to see record staking demand, suggesting strong conviction in its long-term utility. Macro fears have temporarily overridden such positives.
For now, the path forward hinges on two variables: whether the US and EU can de-escalate tariff rhetoric before the February 1 deadline, and whether Bitcoin can reclaim the US$93,000 level to signal short-term stabilisation. If trade tensions ease, altcoins may find relief, but until then, the market will likely remain hostage to geopolitical headlines and the fragility of overleveraged positions.
Source: https://e27.co/bitcoin-crashes-below-us93k-as-trade-war-fears-wipe-out-us357m-in-leverage-20260119/
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
