In the last 24 hours, the crypto market has gone down by a total of 2.54%.
But there's an important point here ๐ค.
In 7 days, the market is still up by +1.17% and in 30 days, it's up by +9.02%.
The main 3 reasons for this drop ๐
1. Geopolitical Issues.
Trump has announced a 10% tariff on products from eight European countries starting February 2026, which may later increase to 25%.
This means ๐ Global Market Risk-Off Mood
This has happened before (US-China trade war), when crypto dropped by almost 25%.
- Result:
When tensions rise between major countries,
๐ People exit Risk Assets (Crypto, Stocks)
๐ Look for Safe Assets
Due to the high correlation between Crypto and Nasdaq, when stocks drop, crypto also feels the pressure.
2. Leverage Unwind (Result of excessive leverage).
In just 24 hours, $127M BTC Long liquidation.
Long liquidation has increased by 3.585% ๐.
Many were trading with high leverage.
As soon as the price drops a bit, ๐ SL hit โ liquidation โ forced sell
This has caused the price to drop further.
3. Altcoin Weakness (Altcoins have broken more)
People are now moving from High Risk Altcoins to BTC
Because:
Altcoin liquidity is low
When there is uncertainty, everyone exits Altcoins first.
But there's an important point here ๐ค.
In 7 days, the market is still up by +1.17% and in 30 days, it's up by +9.02%.
The main 3 reasons for this drop ๐
1. Geopolitical Issues.
Trump has announced a 10% tariff on products from eight European countries starting February 2026, which may later increase to 25%.
This means ๐ Global Market Risk-Off Mood
This has happened before (US-China trade war), when crypto dropped by almost 25%.
- Result:
When tensions rise between major countries,
๐ People exit Risk Assets (Crypto, Stocks)
๐ Look for Safe Assets
Due to the high correlation between Crypto and Nasdaq, when stocks drop, crypto also feels the pressure.
2. Leverage Unwind (Result of excessive leverage).
In just 24 hours, $127M BTC Long liquidation.
Long liquidation has increased by 3.585% ๐.
Many were trading with high leverage.
As soon as the price drops a bit, ๐ SL hit โ liquidation โ forced sell
This has caused the price to drop further.
3. Altcoin Weakness (Altcoins have broken more)
People are now moving from High Risk Altcoins to BTC
Because:
Altcoin liquidity is low
When there is uncertainty, everyone exits Altcoins first.