Crypto Markets Slide as Tariff Fears Trigger Risk-Off Shift, Gold Hits Record Highs
Major cryptocurrencies declined on Monday as renewed tariff concerns triggered a broad risk-off move across global markets, weighing on digital assets while pushing investors toward traditional safe havens.
Bitcoin fell roughly 3.5% on the day, slipping below the $92,000 level, while Ether dropped close to 5% to trade under $3,200. Losses were sharper among higher-beta tokens, with Solana down more than 8% as risk appetite deteriorated.
Risk-Off Sentiment Pressures Crypto Prices
The sell-off was catalyzed by U.S. President Donald Trump’s announcement over the weekend that a 10% tariff would be imposed on goods from eight European countries starting February 1, rising to 25% in June unless an agreement is reached for a “purchase of Greenland.” The news sent U.S. equity-index futures lower at the start of Monday’s trading and contributed to a broad defensive rotation across risk assets.
Crypto markets, increasingly tracking macro sentiment, moved in line with equities as investors reduced exposure to growth-oriented and speculative positions. Total crypto market capitalization fell by approximately 2.6% to around $3.12 trillion during the session.
Liquidations Accelerate the Downturn
Market positioning amplified the decline. More than $600 million in leveraged bullish positions were liquidated over a 24-hour period, according to derivatives data, with long liquidations accounting for the majority of the wipeout.
Bitcoin’s dominance edged higher to about 59%, reflecting relative resilience compared with altcoins, while Ethereum’s share of total market capitalization hovered near 12.4%.
Gold Rallies as Capital Rotates to Safe Havens
While crypto assets retreated, traditional safe havens saw strong inflows. Gold prices surged to fresh record highs, trading between $4,660 and $4,690 per ounce, as investors sought protection from heightened geopolitical and trade-related uncertainty.
Silver also advanced sharply, briefly moving above the $92 per ounce level, reinforcing the defensive shift in market positioning.
Macro Forces Regain Control of Digital Assets
The latest price action underscores the growing influence of macroeconomic forces on digital asset markets. Trade policy uncertainty, geopolitical risk, and global liquidity conditions are increasingly shaping short-term crypto performance.
While longer-term adoption trends remain intact, near-term market behavior continues to reflect broader risk sentiment, highlighting crypto’s integration into global financial markets.
