Crypto’s Downfall: Tariffs, Sells, and a Mystery!

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The crypto market capitalization, that most fickle of lovers, has taken a 1.97% nose dive in the past 24 hours, now languishing at a paltry $3.05 trillion. A mere $3.05 trillion, which is roughly the amount of money I have in my savings account-though I doubt it’s as volatile.

Bitcoin [BTC], that eternal chameleon, fell below the $94.5k level on the 19th of January, causing a market-wide panic so intense it could rival a Russian winter. The selloffs were so fierce, even the ghosts of crypto pioneers wept into their digital coffins.

U.S. President Donald Trump, that paragon of economic wisdom, has once again stirred the pot with his tariff threats against Europe. The resulting uncertainty, akin to a cat walking on hot coals, has left the crypto market trembling. Kobeissi Letter, that esteemed oracle of X, noted that U.S. stock market futures, ever the dutiful servant, extended their losses with the enthusiasm of a man fleeing a bear.

The Nasdaq 100, that once-proud titan, fell 1.6% as trade war fears loomed like a specter. On the 19th of January, $700.5 million in positions were liquidated-a sum so vast it could fund a small nation’s space program. The next day, another $301.7 million followed, as if the market were engaged in a grim game of musical chairs.

Institutional Demand vs. Spot and Derivatives Seller Dominance

Bitcoin, that steadfast barometer of market sentiment, has been a curious creature. Altcoins, those fickle cousins, often mimic leveraged BTC contracts, amplifying moves with the fervor of a drunken crowd. Yet, they have reacted with such bearish zeal that Bitcoin’s dominance has slightly ascended, like a phoenix rising from the ashes of a failed ETF.

While Bitcoin occasionally sees sparks of spot ETF inflows-last week’s spectacle was as thrilling as a well-timed punchline-it does not guarantee a steady bullish trend. The market, after all, is a capricious mistress.

Institutional demand, that elusive ghost, was also strong. CoinGecko’s Bitcoin Treasury data reveals that Strategy [MSTR] and Metaplanet have added substantial Bitcoin to their holdings, which is about as reliable as a Russian novel’s plot. AMBCrypto reports that Saylor, ever the opportunist, hinted at another acquisition, having added 13,627 BTC to its reserves on the 12th of January. A move so bold, it could make a tsar blush.

Once more, this is not enough to sustain an uptrend. The market, it seems, requires more than mere whispers of institutional interest.

Crypto analyst Axel Adler Jr, that sage of the crypto world, revealed that sellers had regained control of the derivatives market after weeks of bullish pressure. The Taker Buy/Sell Ratio, that enigmatic metric, showed a 90-day taker aggression Z-score of -1.81-a seller-dominant regime so profound, it could make a bear weep.

The metric’s recovery toward neutral levels would be an encouraging sign, akin to a snowball’s chance in hell. For now, further downside is possible in the coming days, as if the market were a drunkard staggering through a minefield.

Final Thoughts

  • Crypto is down today due to a combination of reasons, primarily the US-EU trade war that has led to a risk-off market sentiment. A tale of woe, where the crypto market weeps into its pillow.
  • Bitcoin taker sell pressure has mounted since Monday’s sell-off, and more losses are possible in the coming days. A reminder that even the mightiest can fall, like a proud eagle in a storm.

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2026-01-20 22:35