The crypto market was still reeling from losses on Monday as investors fled to gold amid fresh geopolitical and macroeconomic concerns that dampened investor appetiteThe crypto market was still reeling from losses on Monday as investors fled to gold amid fresh geopolitical and macroeconomic concerns that dampened investor appetite

Why is the crypto market down today? (Jan. 26)

3 min read

The crypto market was still reeling from losses on Monday as investors fled to gold amid fresh geopolitical and macroeconomic concerns that dampened investor appetite in the sector.

Summary
  • Crypto market briefly lost the $3 trillion mark on Monday.
  • Concerns over a potential U.S.-Canada trade war and another U.S. government shutdown have kept risk sentiment at bay.

According to data from crypto.news, the global crypto market fell below the $3 trillion mark for the first time since the beginning of the year, slumping nearly 3% as fresh macroeconomic and geopolitical factors spooked investors.

The Crypto Fear and Greed Index fell another five points to 20 on Monday, marking six consecutive days of extreme fear across the sector.

Bitcoin (BTC) fell 3% to an intraday an intraday low of $86,126 earlier today before recouping part of its losses as it managed to stabilize at $87,700 when writing. Ethereum (ETH), the largest altcoin in the market, was still down 3% at press time, trading at around $2,850, while other large-cap cryptocurrencies such as BNB (BNB), XRP (XRP), Solana (SOL), and Dogecoin (DOGE) were also in the red with losses ranging between 1-4%.

Data from CoinGlass shows this slump triggered $605 million in liquidations of bullish bets over the past 24 hours, led by $179.8 million in Bitcoin futures and $203.6 million in Ether-based futures.

Crypto market in panic after US threatens tariffs on Canada

The market tanked largely due to fears of a U.S.-Canada trade war. Market sentiment soured after President Donald Trump threatened a 100% tariff on all Canadian imports, warning the U.S.’s top trading partner against finalizing a free trade agreement with China after Canadian Prime Minister Mark Carney’s high-stakes visit to Beijing.

Investors remain wary as they recall the market volatility during the escalation of the U.S.-China trade war in October last year, when Bitcoin fell significantly following the Oct. 10 crash.

Fear of another US government shutdown grips market

Concerns about another potential U.S. government shutdown are also impacting the market. Investor appetite for crypto has decreased after Senate Democrats threatened to block a $1.2 trillion funding package if it includes funding for the Department of Homeland Security without significant reforms. This situation arose from ongoing protests in Minnesota following a fatal shooting involving federal agents.

As a result, there is a risk of a shutdown by the Jan. 31 deadline. Prediction markets like Kalshi showed odds of a shutdown had surged from 10% on Saturday to over 76% on Monday. At the same time, Polymarket odds reached 80%.

During the previous U.S. government shutdown spanning from the beginning of October to Nov. 12, Bitcoin fell nearly 21% from its all-time high to around $100,000, driven by prolonged political deadlock in Washington and Trump’s tariff threats on China, which triggered the Oct. 10 crypto market crash.

Gold has strongly outperformed Bitcoin since the crash, as traders appear to favor traditional safe-haven assets over volatile digital currencies, which has continued into the new year. 

Gold recently broke above the $5,000 milestone, marking over 17% gains so far in 2026, a sharp divergence from Bitcoin’s price action, which remains 30.4% below its record high of $126,080 hit in October last year.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Trump foe devises plan to starve him of what he 'craves' most

Trump foe devises plan to starve him of what he 'craves' most

A longtime adversary of President Donald Trump has a plan for a key group to take away what Trump craves the most — attention. EX-CNN journalist Jim Acosta, who
Share
Rawstory2026/02/04 01:19
3 Crypto Trading Tips That Work

3 Crypto Trading Tips That Work

The post 3 Crypto Trading Tips That Work appeared on BitcoinEthereumNews.com. Crypto News 21 September 2025 | 01:45 Learn the three essential steps to move from beginner to professional trader in crypto: build knowledge, develop strategy, and spot opportunities early. Everyone starts somewhere in crypto trading, often with nothing more than a small deposit and a lot of curiosity. But while many beginners give up their first losses, some hone their skills and eventually trade like a pro. Notably, the difference isn’t luck. Instead, it is the capacity to learn and be disciplined and recognize opportunity. In today’s presale markets, MAGACOIN FINANCE has got a name as a project that can accelerate that journey. This brings out the role that smart positioning plays as much a part as strategy itself. Build a Solid Foundation Interestingly, professional traders do not emerge overnight. They begin by learning the fundamentals, from how exchanges work to the reasons why tokens have different utilities. Understanding blockchain fundamentals, supply mechanics, and tokenomics is essential. It helps prevent beginners from making costly mistakes when chasing hype or purchasing tokens with weak fundamentals. In addition, technical analysis is also part of this foundation. Even simple tools such as support and resistance levels, moving averages, and trading volume are of use in adding structure to a volatile market. Traders that learn these tools early can make decisions based on patterns rather than emotions. Develop a Clear Strategy Strategy is one of the biggest gaps between beginners and professionals. Beginners usually move from one hype to the other, while the pros are glued to well-defined methods. Whether it’s day trading or swing trading or holding onto it for the long haul, the important thing is to be consistent about it. Having a plan helps prevent the temptation to make emotional decisions. Fear of missing out and panic selling are common traps.…
Share
BitcoinEthereumNews2025/09/21 06:48
Why Bitcoin Is Struggling: 8 Factors Impacting Crypto Markets

Why Bitcoin Is Struggling: 8 Factors Impacting Crypto Markets

Failed blockchain adoption narratives and weak fee capture have undercut confidence in major crypto projects.
Share
CryptoPotato2026/02/04 01:05