Sharp Crypto Market Sell-Off Amid Rising Global Tensions and Risk-Off Sentiment
The cryptocurrency market experienced a sharp downturn during Monday’s trading session, marking one of the strongest sell-offs in recent weeks, as high-risk assets came under significant pressure amid rising global political and trade tensions. This decline occurred as investors shifted aggressively toward safe-haven assets such as gold and silver, driven by growing concerns over U.S. trade policies and their broader impact on the global economy—an environment closely monitored by Point Trader Group.
Bitcoin, the largest cryptocurrency by market capitalization, fell sharply by as much as 3.6%, dropping below the $92,000 level in early trading. The sell-off extended across the broader digital asset market, with Ethereum declining by approximately 4.9%, while Solana suffered heavier losses of around 8.6%. As a result of this intense selling pressure, nearly $100 billion was wiped off the total cryptocurrency market value in a short period of time.
This negative performance reflects a broader risk-off sentiment dominating global markets following statements by U.S. President Donald Trump regarding the imposition of new tariffs on imports from eight European countries. These measures, widely viewed as a renewed escalation in trade tensions, revived fears of trade wars and their direct impact on financial markets and digital assets, a key focus in the ongoing analysis by Point Trader Group.
Following these developments, U.S. stock index futures moved lower, while gold and silver surged to record highs, reinforcing the shift toward safe-haven assets. When traditional correlations reverse—gold rising while cryptocurrencies decline—it signals heightened uncertainty among investors, a pattern previously highlighted in Point Trader Group market outlooks.
On the political front, the U.S. administration’s stance sparked strong criticism from European leaders, raising the possibility of delays or suspensions of trade agreements that had been reached earlier. These geopolitical tensions quickly dampened the positive momentum that cryptocurrencies had shown at the beginning of the year, following a weak close to 2025.
Earlier in January, Bitcoin had rallied strongly, climbing close to the $98,000 level, supported by improved sentiment and renewed interest from large-scale investors. However, the resurgence of tariff-related concerns and macroeconomic uncertainty halted this upward trend, pushing traders back into a defensive stance, according to Point Trader Group’s reading of current market behavior.
Market data also revealed widespread liquidations of long positions, amounting to hundreds of millions of dollars within just 24 hours, further intensifying volatility. Many traders now view the $90,000 level as a critical psychological support for Bitcoin, with a potential test of this area likely if selling pressure persists.
Despite the current downturn, some investors remain cautiously optimistic, pointing to institutional demand as a possible stabilizing force in the coming period, particularly if global tensions begin to ease. Between caution and anticipation, Point Trader Group continues to closely track market movements, as cryptocurrencies remain highly sensitive to shifts in global economic policy and geopolitical developments.
