The recent pressure around a new tariff war between the US and the EU has sent the crypto market into turmoil, with significant outflows from investment products.
By Wahid Pessarlay
Editor Julia Sakovich
Updated
2 mins read
The cryptocurrency market is under pressure from multiple sides, and even the massive whale buying spree couldn’t neutralize the selloff.
According to data from CoinMarketCap, the global crypto market capitalization fell from $3.11 trillion to $3.02 trillion over the past 24 hours, marking a roughly $90 billion downfall.
Spot Bitcoin BTC $89 200 24h volatility: 1.9% Market cap: $1.78 T Vol. 24h: $57.53 B exchange-traded funds in the US also recorded a net outflow of $483.4 million on Jan. 20, led by Grayscale’s $160.8 million selloff, according to SoSoValue data.
Due to the downward pressure over the past few days, the market sentiment, consequently, dropped from 54 (neutral) on Jan. 15 to 32 (fear) at the time of writing, CMC data shows.
Most of the leading cryptocurrencies recorded price falls. BTC is down 2.2% in 24 hours and is currently hovering at $89,100. Ethereum ETH $2 959 24h volatility: 4.3% Market cap: $357.27 B Vol. 24h: $32.15 B plunged 4.9% to $2,960. The CMC 20 Index DTF, which tracks the prices of the top 20 cryptocurrencies, also dived 2.8% in the same timeframe.
Following the latest downturn, the crypto market recorded $929 million in 24-hour liquidations ($820 million in longs and $109 million in shorts), according to CoinGlass data.
Data shows that more than 176,000 traders have been liquidated, with the largest wipe-out position valued at $13.5 million in the BTC/USDT pair on the Bitget crypto exchange.
The market-wide selloff increased as US President Donald Trump threatened to impose an additional 10% tariffs on the European Union countries. Moreover, the EU is also looking to escalate the situation against Trump’s movement toward Greenland.
Despite the macro pressure, the Bitcoin treasury company Strategy accumulated 22,305 BTC for $2.13 billion, which was the largest acquisition by the company, on Jan. 20.
In addition, the market intelligence platform Santiment pointed out that Bitcoin addresses with 10 to 10,000 BTC holdings purchased 36,322 coins between Jan. 11 and 20.
https://twitter.com/santimentfeed/status/2013696839363551380
On the other hand, wallets with less than 0.01 Bitcoin sold 132 BTC in the same timeframe.
The movements show panic from small investors while whales continue to accumulate despite the market-wide selloff and institutional outflows.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Wahid has been analyzing and reporting on the latest trends in the decentralized ecosystem since 2019. He has over 4,000 articles to his name and his work has been featured on some of the leading outlets including Yahoo Finance, Investing.com, Cointelegraph, and Benzinga. Other than reporting, Wahid likes to connect the dots between DeFi and macro on his newsletter, On-chain Monk.
