A significant crash occurred in the cryptocurrency market, triggered by a series of macroeconomic factors. On the night of January 21, 2025, the price of Bitcoin dropped below the $89,000 level, causing a massive wave of liquidations of futures positions. According to CoinGlass, the liquidation volume reached nearly $930 million within a day.
This is reported by Business • Media
Bitcoin and Key Digital Assets Lost Value
As of the time of preparing this news, Bitcoin is trading around $89,600, having declined by more than 6% over the week. Along with Bitcoin, other leading cryptocurrencies also recorded losses: Ethereum fell by 4.6% in a day, Solana lost 2.46%, and TRX dropped by 3.77%. The decline affected almost all crypto assets in the top 10 by market capitalization.
In the last 24 hours, over 176,000 traders were forced to close their positions. The largest losses were observed among long positions, as many market participants expected a continuation of the upward trend following the previous correction on January 19.
Investor Reaction and Macroeconomic Impact
The Fear and Greed Index in the crypto market fell by another 13 points, indicating a prevailing sentiment of selling among investors. This trend highlights the uncertainty that currently dominates the digital asset market.
“The crash in the crypto market is likely driven by overall macroeconomic uncertainty. In addition to the tariff policies of U.S. President Donald Trump, the sale of Japanese government bonds has heightened concerns.”
The negative dynamics were also supported by stock markets: leading indices such as MSCI and Nikkei also declined — by 0.3% and 1.2% respectively. The cumulative impact of global economic policies, including new tariff initiatives from the U.S. President and instability in the Japanese bond market, is creating additional pressure on investors and increasing volatility in the cryptocurrency market.