Trump's trade threats and bond market turmoil trigger cryptocurrency safe-haven, ETH, SOL, and ADA collectively decline

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.