The crypto market has taken a sharp turn downward, with over 5.5% wiped from the global market cap in just one day, now sitting at $3.57 trillion. Bitcoin is down more than 13% over the past week, falling to $105K. Ethereum dropped to $3,780 after losing nearly 7% today. BNB and XRP both posted double-digit daily losses, and the Fear and Greed Index has dropped to 22 – a level classified as “extreme fear.”
While sudden drops are not unusual in crypto, the timing and scale of this sell-off suggest broader market pressures are playing a role beyond internal technical factors.
Tariff Uncertainty and Broader Market Stress
Ongoing trade tensions between the U.S. and China are adding to investor uncertainty. President Trump confirmed additional tariffs on Chinese imports, calling the current levels “probably not sustainable“. Meanwhile, economic concerns are growing due to the unresolved government shutdown and signs of weakness in regional U.S. banks.
These developments have increased risk aversion in traditional markets. Many investors are shifting away from high-volatility assets like crypto and toward safer options. U.S. stock markets briefly recovered after Trump’s comments eased fears of immediate escalation, but the cautious sentiment remains.
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Mass Liquidations and Declining Volume
Over $1.2 billion in crypto positions were liquidated in the last 24 hours, most of them long trades. That wave of forced selling has pushed prices down sharply across all major tokens. Bitcoin’s price touched as low as $103,500, and Ethereum has followed a similar trajectory.
Data also shows net outflows from spot ETFs and exchanges, with Bitcoin alone seeing more than $1.6 billion withdrawn over the past five sessions. The lack of strong buying support has left prices more sensitive to sudden movements.
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Safe-Haven Assets Attract Demand
While nearly every cryptocurrency in the top 100 turned red, the only green tokens today were PAX Gold and Tether Gold – both are stablecoins tracking the price of gold. This shift reflects a larger move by investors into traditional safe-haven assets. Gold itself is trading at record highs above $4,300 an ounce.
Bitcoin, often compared to gold as a store of value, has not mirrored that trend. Instead, its performance has tracked more closely with risk-sensitive assets in recent days.
Read also: How to Invest in Gold: From Coins and Bars to Crypto Tokens
Outlook Remains Uncertain
At the moment, no major positive catalysts are on the horizon. Until there is more clarity on trade policy, economic data, and the resolution of the U.S. shutdown (which delays crypto ETF approvals), market conditions will likely remain volatile.
Technical analysts are watching the $100K level for Bitcoin as a psychological support. If that breaks, further selling pressure could follow. On the other hand, some traders are also monitoring sentiment for signs of stabilization or a potential short-term bounce.
