On January 21, news reports indicate that the global cryptocurrency market experienced a significant sell-off on Tuesday, with Ethereum (ETH), Solana (SOL), and Cardano (ADA) all declining by approximately 5%. Bitcoin’s price temporarily fell below $90,000, and market risk aversion sentiments markedly increased. Threats from Trump regarding tariffs on certain European countries, coupled with selling pressure in the US and Japanese bond markets, prompted investors to withdraw from high-risk assets, leading to increased cryptocurrency volatility.
ETH dropped about 6.5% within 24 hours, briefly falling below $3,000; SOL declined over 4% on the day, with a seven-day decline exceeding 12%; ADA fell approximately 2%, with a nearly 15% decrease over the week, indicating that high-beta tokens tend to be more volatile during market panic. As a market risk indicator, Bitcoin’s price decline triggered chain liquidations of leveraged positions, with over $1.09 billion in crypto positions liquidated in the past 24 hours, 92% of which were long positions.
Market analysis points out that Trump’s push for Greenland and threats of tariffs have heightened geopolitical uncertainties. Additionally, soaring bond yields have led investors to favor cash-flow-stable safe-haven assets. The surge in gold prices further confirms this trend. Altcoins, due to their high volatility, led the decline, while Bitcoin also faced downward pressure amid long squeeze scenarios.
This sell-off serves as a reminder to traders that global politics and bond markets continue to have a key influence on cryptocurrency trends. In a crowded position environment with suppressed volatility, market tolerance for sudden shocks diminishes. Investors are closely watching Trump’s policy moves following his attendance at the Davos Forum, as well as potential further fluctuations in interest rates and currency markets. In the short term, the cryptocurrency market may enter a more defensive phase, requiring traders to carefully manage positions and leverage risks.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Ethereum Foundation Offloads $10.2M ETH to BitMine in OTC Deal
The Ethereum Foundation has completed a direct OTC sale of 5,000 Ether to BitMine Immersion Technologies, a move valued at about $10.2 million at the agreed price of $2,042.96 per ETH. The deal was announced in a Saturday post on X, with proceeds earmarked to support the foundation’s core
CryptoBreaking1h ago
SEC and CFTC Reach New 2026 Cryptocurrency Regulatory Agreement to Jointly Clarify Market Rules
The U.S. SEC and CFTC signed a memorandum of understanding on March 11, planning to jointly coordinate cryptocurrency regulation by 2026, covering six priority areas to mitigate jurisdictional conflicts between the two agencies, providing a clearer market environment and compliance guidance.
GateNews1h ago
A Certain CEX's 24-Hour Trading Volume Reaches $1.369 Billion, XRP, BTC, ETH Rank in Top Three
According to CoinGecko data, on March 16, a certain CEX's trading volume reached $1.369 billion, up 72.28% from the previous day. The top five tokens by trading volume are XRP, BTC, ETH, TRUMP, and DKA.
GateNews1h ago
BlackRock Attracts $600 Million in Bitcoin ETF Inflows, ETH and SOL Rally in Tandem, XRP Under Pressure Against the Trend
This week, Bitcoin spot ETF net inflows were significant, with BlackRock's IBIT absorbing $600.1 million and solidifying its leading position, while Grayscale's GBTC saw outflows of $25.9 million. Meanwhile, Ethereum and Solana ETFs also performed well, but XRP ETF experienced capital outflows of $28.07 million. Analysis suggests that current capital flows indicate institutional demand for safe-haven positioning in mainstream crypto assets, while the cautious stance toward XRP may influence market trends.
GateNews1h ago
ETH Short-term Decline of 0.74%: Institutional Rebalancing and Short-term Profit-Taking Drive Selling Pressure
On March 16, 2026, from 06:00 to 06:15 (UTC), ETH experienced significant volatility within a 15-minute period, with a return of -0.74%. The price fluctuated between 2260.98 and 2281.3 USDT, with an amplitude of 0.89%. During this time, trading volume noticeably increased compared to the previous cycle, market volatility intensified, and community attention was drawn.
The main drivers of this volatility were large on-chain ETH transfers and substantial sell orders on the exchange, suspected to be institutional or whale portfolio rebalancing activities during this window, which directly led to short-term downward pressure on the price. Simultaneously, order book depth decreased, buy-side support diminished, and large individual trades further contributed to the market instability.
GateNews2h ago
