The crypto market moved sharply lower on Tuesday, even after U.S. President Donald Trump said he plans to sign a major crypto market structure bill “very soon.”
Total crypto market value slipped to $2.96 trillion, down about 2% in 24 hours, while investor sentiment stayed weak.
Top coins trade lower
The broader market has now fallen more than 8% over the past week, with many coins trading in oversold territory.
Markets initially reacted positively to Trump’s comments at the World Economic Forum in Davos, where he backed crypto legislation, starting with the GENIUS stablecoin act. Bitcoin briefly surged by about $2,000, adding nearly $60 billion to the total crypto market.
However, the rally did not last. Just two hours later, Bitcoin dropped more than $3,200, triggering heavy liquidations. Around $148 million in long positions were wiped out in just 90 minutes as leveraged traders were forced out.
Analysts point to several factors behind the sudden drop:
Risk-off mood globally
Trump’s comments on possible tariffs and rising geopolitical tensions pushed investors away from risky assets. While gold moved higher, crypto followed equities lower.
Leverage-driven selling
Derivatives trading surged, with Bitcoin and Ethereum seeing large liquidations. High leverage made the market fragile, and once prices turned down, selling accelerated quickly.
Sector-specific pressure
Regulatory actions and token delistings added extra stress to parts of the market, especially smaller altcoins and privacy-focused projects.
Despite Trump’s pro-crypto stance and promises of clearer regulation, traders remain focused on short-term risk, leverage, and global uncertainty. For now, policy optimism is being outweighed by market volatility.
Until selling pressure eases and leverage resets, analysts say crypto prices could remain unstable, even as longer-term regulatory signals stay positive.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Solana (SOL) price has slipped over 12% in the past seven days to trade at…
The cryptocurrency market is being viewed through a cyclical lens, with investors debating whether past…
U.S. President Donald Trump said he plans to sign a major crypto market structure bill…
Bitcoin is showing early signs of stability after dropping into a key support zone, but…
On January 21, 2026, the crypto market is witnessing a powerful institutional-led breakout, with River…
A macro market expert has offered a simple explanation for why large institutions are increasingly…
