Crypto markets woke up to intense selling pressure on January 19, with prices flashing red across the board. Bitcoin slipped below a key psychological level, altcoins bled deeper, and panic-driven liquidations wiped out billions in leveraged positions. The trigger came from outside the crypto world, once again reminding traders how closely digital assets are tied to global politics and macro risk.
By press time, the global crypto market capitalization had fallen 2.79% to $3.13 trillion, reflecting a clear shift toward risk-off sentiment.
Bitcoin breaks support as fear takes over
Bitcoin traded at $92,606, down 2.57% in 24 hours, after briefly holding firm over the weekend. The drop came fast once geopolitical tensions resurfaced, breaking below levels that had previously attracted strong buyers.
Trading activity spiked sharply, with Bitcoin’s 24-hour volume jumping nearly 79% to $32.12 billion. While higher volume often signals interest, this time it pointed to panic exits rather than confident accumulation.
Market watchers noted that Bitcoin had been consolidating between $94,500 and $96,000 before sentiment flipped. Although institutional flows remain supportive, short-term fear overpowered longer-term conviction, weakening the $95,000 support zone.
Interestingly, on-chain data still shows larger wallets accumulating aggressively, suggesting long-term players are using the dip rather than abandoning positions entirely.
Ethereum and XRP feel the heat
Ethereum was not spared. The second-largest cryptocurrency dropped 3.08% to $3,207, briefly slipping below the critical $3,200 mark. Traders viewed the move as technically damaging, even though ETH managed a minor bounce shortly after.
XRP suffered heavier losses, sliding 4.22% to $1.96 and breaking below the psychologically important $2 level. Liquidations in XRP long positions accelerated the decline, sending the token to an intraday low near $1.90 before buyers stepped in.
Market sentiment around XRP remains fragile, with traders closely watching whether it can reclaim lost ground or continue drifting lower.
Altcoins slide harder than Bitcoin
As usual during market stress, altcoins bore the brunt of the damage. Cardano emerged as the biggest loser among top cryptocurrencies, plunging 7.58% to $0.364. Solana followed closely, falling 6.26% to $133.
Dogecoin also slipped 7.23%, reflecting how speculative assets are often the first to be sold when fear dominates. BNB held up relatively better, dropping 2.33% to $925, outperforming most major peers.
This pattern reinforced a familiar trend: when uncertainty rises, traders rotate out of volatility and into perceived safety.
TRON and stablecoins offer rare relief
TRON stood out as a rare bright spot, gaining 0.31% to trade at $0.320. While modest, the move made TRX the only top 10 token to stay green during the sell-off.
Stablecoins played their traditional defensive role. Tether held steady near $0.999, while its trading volume surged nearly 59% to $81.92 billion as traders parked capital on the sidelines. USDC also remained stable, highlighting the growing reliance on dollar-pegged assets during market turbulence.
Trump tariff shock sparks market-wide sell-off
The catalyst behind the chaos was US President Donald Trump’s unexpected announcement of fresh tariffs targeting 8 European nations. The proposed 10% tariffs, with a warning of a potential increase to 25% by June, rattled investors across global markets.
The statement introduced renewed fears of a trade war, pushing capital out of risk assets. While gold and silver rallied to record highs, cryptocurrencies followed equities lower, showing once again that digital assets are not immune to macro shocks.
Social media reactions were swift, with traders criticizing the unpredictability of policy-driven volatility and warning that geopolitical headlines now move crypto as much as blockchain fundamentals.
Liquidations explode across exchanges
The sharp move triggered massive forced liquidations. In just 24 hours, total crypto liquidations reached $866 million. Long positions accounted for $783 million, while shorts made up only $82.3 million.
More than 242,000 traders were liquidated globally, with the single largest loss recorded on a BTC-USDT position worth $25.83 million. Bitcoin alone saw $222 million in long positions wiped out, while Ethereum longs lost $118 million.
The data highlighted how heavily leveraged the market had become ahead of the downturn.
Bitcoin dominance rises as traders seek shelter
Despite falling prices, Bitcoin dominance ticked up to 59.1%, reflecting a flight away from smaller tokens. Ethereum’s market share edged up slightly to 12.4%, while the rest of the market lost ground.
This shift underscored a familiar pattern: during uncertainty, capital consolidates into larger, more established cryptocurrencies.
What comes next for Crypto markets
Short-term outlook remains cautious. Analysts expect continued volatility until there is greater clarity around trade policy developments and their impact on global markets.
Key levels are now under the spotlight. Bitcoin is hovering dangerously close to $92,000 support, while XRP faces pressure near $1.93. A sustained break below these levels could signal that the current dip is more than a temporary shakeout.
For now, the message from the market is clear. In an interconnected financial world, crypto is no longer insulated from global politics, and headlines can still move prices faster than fundamentals.
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