Concerns over tariffs have led to a correction in altcoin-led markets, while gold breaks through new highs

The early-week cryptocurrency market faces a retreat in global risk appetite amid new U.S. tariff threats. Altcoins are at the forefront of this sell-off pressure, with a notable divergence from Bitcoin. As macroeconomic uncertainties increase, investor funds are sharply divided, accelerating the shift from risk assets to safe-haven assets.

Bitcoin and Altcoins Show Diverging Declines

The altcoin sector is experiencing the most intense sell-offs, leading the overall market correction. According to CoinGecko data, Solana (SOL) has fallen 3.63% in 24 hours, Ripple (XRP) is down 2.95%, and Dogecoin (DOGE) has adjusted by 4.53%. All of these tokens have declined more than Bitcoin, exemplifying the high-beta asset tendency to be pulled down in risk-off environments.

Bitcoin is no exception, having risen close to $98,000 last week, but this week it has corrected to $88,010 (as of January 29, 2026). This represents approximately a 2.16% decline. Meanwhile, Ethereum (ETH) has weakened to around $2,930, down 3.28% in 24 hours.

Chain Reaction from Large Leverage Liquidations

Behind this correction mechanism are trader repositioning and large-scale liquidation of bullish positions. Data from Coinglass shows that approximately $600 million worth of crypto long positions have been wiped out in the past 24 hours, most of which involved leveraged trading.

This wave of liquidations is not just about price suppression. As open interest in Bitcoin decreases, market participants are closely watching whether the support level near $90,000 will hold. If this price level is broken, further adjustments could accelerate.

Resurgence of Tariff Fears Shaking Global Markets

Last weekend, comments from U.S. President Trump suggesting an increase in tariffs on European products triggered this sell-off pressure. The implementation of a 10% tariff from February 1 and a phased increase to 25% by the end of June have rapidly strengthened investors’ defensive stance.

These concerns extend beyond the crypto market to the entire global financial system. U.S. Nasdaq 100 futures declined over 1%, and European futures are also being sold off amid renewed tariff worries. Asian markets are mixed, but many regions are showing signs of moving away from high-risk assets.

Funds Shift to Safe-Haven Assets: Gold Hits All-Time High

Contrasting with altcoins, traditional safe-haven assets like gold and silver are showing opposite movements. Precious metals have hit new highs in the past 24 hours, surging past $5,500 per ounce. Their nominal value fluctuates violently, with about $1.6 trillion changing hands in a single day.

The JM Bullion Gold Fear & Greed Index indicates extreme bullishness in the precious metals market, but sentiment indicators for cryptocurrencies remain dominated by fear. This stark divergence suggests investors are temporarily setting aside the narrative of Bitcoin as a “physical asset” and seeking more reliable stores of value.

Market Outlook and Investor Challenges

Cryptocurrencies are currently exhibiting trading patterns closely linked to global risk sentiment. Many tokens, including altcoins, are functioning similarly to traditional risk assets, reacting sensitively to geopolitical and economic uncertainties.

Market participants are focused on whether Bitcoin can maintain support around $90,000 and whether the sell-off in the altcoin sector is temporary or the start of a structural correction. Future trade negotiations and monetary policy developments are likely to significantly influence the direction of the crypto market.