TL;DR
- Tariff threats tied to Greenland sparked a risk-off move, pushing BTC toward $92,000 and shrinking crypto market cap by over $100B in liquidity.
- $875M was liquidated in 24 hours, mostly longs: $788M vs $83M shorts, with Hyperliquid, Bybit and Binance leading the forced closures across venues.
- Altcoins fell harder: ETH near $3,200, XRP to $1.84, and several tokens posted double-digit losses as BTC dominance rose to 57.5% in defensive rotation.
Tariff headlines jolted crypto markets into a risk-off posture, sending Bitcoin lower while altcoins absorbed the heavier hit. Total capitalization slipped to about $3.14 trillion, roughly 2.5% down on the day, while another market snapshot showed more than $100 billion erased to around $3.220 trillion. Bitcoin stayed resilient above $93,000 for stretches but dipped under $92,000 as liquidity thinned and traders de-risked. This was not a random wobble, it was macro anxiety getting priced through the most liquid crypto pairs. Indicators showed caution, not panic, with fear and greed near neutral and RSI oversold.
Tariffs hit crypto
President Donald Trump’s weekend threat to impose tariffs on eight European nations over Greenland hit during thin holiday trading and repriced risk. Within 24 hours, about $875 million in crypto liquidations were recorded as Bitcoin slid roughly 3% to $92,000. Trump said the levies would start at 10% on February 1 and climb to 25% by June 1 until a deal is reached. When a geopolitical headline lands on leveraged positioning, crypto’s liquidity can turn from deep to fragile in minutes. European officials convened emergency meetings as markets tried to map the next steps.
The washout was long-side. CoinGlass figures put $788 million of liquidations in longs versus $83 million in shorts, with longs accounting for more than 90% of forced closures across venues. By exchange, Hyperliquid led with $262 million, followed by Bybit at $239 million and Binance at $172 million. Bitcoin futures open interest had rebounded about 13% from early January lows, but the tariff shock pushed that recovery back under pressure. This kind of deleveraging is painful, yet it can also reset the market’s risk budget. Traders will watch positioning rebuild.
Altcoins took the brunt. Ethereum failed near $3,350 and slid toward $3,200, while XRP dropped below $2.00 and hit $1.91. Double-digit losers included ASTER, SUI, APT, ONDO, ARB, PEPE, and ENA, even as XMR and ICP posted gains. Bitcoin’s market cap slipped under $1.860 trillion and its dominance climbed to 57.5%, a classic defensive rotation. In this pullback, the message is simple: capital is prioritizing liquidity, and everything else is being marked down. With the altcoin season index subdued, the setup leans toward consolidation as traders wait for signals before re-engaging with higher beta.
