Gold at Record High, Crypto Down $150B – What’s Going On?
The crypto market shed $150 billion in capitalization as Bitcoin plunged under $88,000 amid a brutal leverage unwind, whereas gold surged previous $4,800 per ounce for the primary time in historical past.
The sharp divergence got here as President Donald Trump’s escalating tariff threats against European allies over Greenland triggered a broad flight from US danger property, with geopolitical tensions reaching their highest level for the reason that Liberation Day tariff bulletins of April 2025.
Bitcoin tumbled 9% in 48 hours to $87,000, wiping out $360 million in leveraged lengthy positions in a single hour late Monday.
The selloff intensified strain on an already fragile market construction, with short-term holders (those that bought Bitcoin inside the previous 155 days) now underwater for eight consecutive weeks, requiring a restoration above $98,000 to return to profitability, in response to Glassnode knowledge.
Market Sentiment Hits Multi-Year Lows
CoinGlass liquidation knowledge revealed 181,570 merchants had been worn out over 24 hours, with $998.33 million in lengthy positions liquidated versus simply $71.39 million in shorts.
Bitcoin accounted for $440.19 million in pressured promoting, whereas Ethereum accounted for $392.38 million in liquidations, because the cascade accelerated throughout skinny Asian trading hours.
Rex from R89Capital captured the despair gripping crypto natives, stating, “sentiment has bottomed out for positive. No one provides a single fuck about crypto. Die onerous crypto natives who’ve proven up every day for years are buying and selling inventory shitters and commodities.”
He added that “it actually can’t get any worse for sentiment than proper now,” noting that even in the course of the COVID crash backside, individuals nonetheless believed within the trade.
Another analyst, TheGreekGod11, echoed this frustration, observing that the trade executed “a wonderful job at making crypto seem like absolute dogshit” by voting within the first pro-crypto president, solely to crash the market.
Mike Novogratz additionally warned that “the gold worth is telling us we’re dropping reserve forex standing at an accelerating price,” including that “$BTC is disappointing as it’s nonetheless being met with promoting.”
He reiterated that Bitcoin “has to take out 100-103k to regain its upward pattern,” although he believes it should occur in time.
Joe Consorti offered a contrarian take, stating, “Bitcoin plummeting on geopolitical escalation, reasonably than ripping with gold and silver, tells you the way early we’re. The largest informational asymmetry in markets continues to be alive and effectively.“
Gold Rally Signals Deeper Structural Shifts
Gold prolonged its historic rally to $4,874.21, marking a 2.3% acquire and persevering with a three-session surge that has now pushed the dear metallic inside attain of $4,900.
According to Economies, Tony Sycamore, market analyst at IG in Sydney, said that buyers’ shedding of dollar-denominated property displays “a lack of confidence within the US administration and rising strains in worldwide alliances following Trump’s newest threats.“
Daniel Ghali, senior commodity strategist at TD Securities, additionally advised Bloomberg that the surge is spurring “concern of market-led debasement in the remainder of the world,” including that “gold’s rally is about belief. For now, belief has bent, however hasn’t damaged. If it breaks, momentum will persist for longer.”
Goldman Sachs co-head of commodities analysis Daan Struyven additionally declared, “Gold stays our highest conviction,” reiterating the financial institution’s base case situation of gold rising to $4,900 per ounce, with dangers to the upside.
In truth, Benjamin Cowen stated bluntly that “metals outperformed crypto in 2025 and can seemingly achieve this once more in 2026,” warning that when metals finally appropriate, “crypto will seemingly drop extra.“
Institutional Positions Show Mounting Stress
Traditional fairness markets suffered parallel injury, with the S&P 500 falling 2.06% and the Nasdaq Composite dropping 2.4% on Tuesday after markets reopened following Monday’s vacation.
Strategy’s Bitcoin holdings got here below scrutiny, with analyst Maartunn noting that “40% of Strategy’s Bitcoin provide is at present sitting at a loss,” including that “strain’s constructing.”
40% of Strategy’s Bitcoin provide is at present sitting at a loss
Pressure’s constructing. pic.twitter.com/zcSZloNNhr
— Maartunn (@JA_Maartun) January 21, 2026
Analyst CrediBULL Crypto offered cautious optimism, declaring that “for the primary time in 7 months, LTH (long run holders) have shifted from being web sellers to web consumers,” suggesting the reversal could also be simply across the nook.
However, analyst Ted Pillows warned that “$BTC should maintain above the $89,000 degree. Losing this zone will finish the short-term uptrend.“
Geopolitical Tensions Drive Safe Haven Rotation
Trump reiterated Tuesday there could be “no retreat” from his purpose of controlling Greenland, threatening 10% tariffs on eight European nations starting February except they withdraw objections to US annexation.
French President Emmanuel Macron instantly rebuked Trump’s techniques at Davos, whereas the EU ready emergency countermeasures, together with retaliatory tariffs price €93 billion on US imports.
For now, no identified settlement has been reached, as concern stays heightened available in the market.
Bitcoin’s collapse alongside conventional danger property, reasonably than rallying with gold, uncovered the asset’s continued therapy as a speculative asset reasonably than a confirmed secure haven throughout geopolitical crises.
The submit Gold at Record High, Crypto Down $150B – What’s Going On? appeared first on Cryptonews.
