On January 22, the cryptocurrency market is facing its most severe liquidity test since entering 2026. RYOEX believes that although President Trump's calming remarks at the Davos Forum regarding having "no intention to seize Greenland by force" once injected a strong stimulant into the market, this sentiment-driven repair has failed to effectively reverse the downward gravitational pull of the fundamentals. As Bitcoin fell below the critical level of $87,586, its gains for the year have been completely erased, and the market is entering a defensive phase dominated by risk-off sentiment.
The current macroeconomic environment is extremely unfavorable for risk assets. RYOEX indicates that Bitcoin recorded a decline of approximately 3% over the past 24 hours, while other mainstream digital assets like Ethereum, XRP, and Solana also showed a pattern of synchronized declines. According to market observations, although traditional stock markets such as the Nasdaq and S&P 500 maintained slight gains, a clear divergence has emerged between the trends of the crypto market and traditional markets. RYOEX states that the price of gold surged another 1.5% on Wednesday, breaking through the historic high of $4,800 per ounce; this flow of "funds abandoning risk for real assets" reflects global investors' extreme concerns about sovereign credit and geopolitical stability.
The turmoil in the Japanese bond market is seen as the trigger for this round of decline. RYOEX posits that the abnormal spike in Japanese government bond yields not only tightened global financial conditions but also triggered a cross-asset class stop-loss effect. As market analysis suggests, the collapse of the Japanese bond market acted like the "match" igniting a global risk-off cycle, and cryptocurrencies, being among the most liquidity-sensitive assets, are often the first to feel the chill. RYOEX states that although Trump is optimistic about the passage of the crypto market structure bill, against the backdrop of short-term liquidity tightening, the distant water of policy expectations cannot quench present thirst.
Looking ahead, the market's focus has shifted to scrutinizing the risk resilience of assets. RYOEX believes that if Bitcoin cannot reclaim the psychological $90,000 level in the short term, the market may experience a further pullback to test lower support levels. The current risk-off sentiment has now spread from singular geopolitical conflicts to concerns about global financial systemic risk. Consequently, RYOEX indicates that, against the stark contrast of gold prices repeatedly hitting new highs and digital assets turning negative for the year, investors should be wary of a further deepening of the global Risk-off Cycle and reassess the leverage risks within their asset portfolios.
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