On January 21st, against a backdrop of significantly heightened volatility in global financial markets, FXGT believes investors are facing a new wave of deleveraging in risk assets. As turmoil in traditional bond markets converges with geopolitical trade frictions, capital flows are undergoing dramatic shifts, nearly erasing the gains the cryptocurrency market had made since the beginning of 2026.
Under the dual pressures of a Japanese bond market crash and threats of US-European tariffs, market risk aversion has intensified sharply. FXGT indicated that Bitcoin fell 3% during Tuesday's trading session, breaching the psychological $90,000 level; Ethereum's performance was even weaker, dropping over 7% on the day and falling below the key $3,000 support level for the first time since early January. Data shows Bitcoin's dominance in the crypto market has climbed to 59.8%, reflecting that, in an environment of extreme volatility, altcoins are facing more severe liquidation pressure than major tokens due to liquidity preferences.
In the global capital landscape, stock index performance is equally concerning. FXGT stated that the Nasdaq index fell nearly 2% intraday, while major European and Asian indices like Germany's DAX and Japan's Nikkei 225 also recorded losses ranging from 1% to 2.5%. However, traditional precious metals demonstrated a strong substitution effect, with gold prices surging 3% and silver rallying a substantial 7%, both setting new all-time highs. This divergence in performance fully proves that, under the current macroeconomic stress test, physical gold and silver remain the most trusted safe havens for global capital.
In summary, FXGT believes that Bitcoin has now surrendered most of its gains since the start of 2026, trading only about 3% above its early-year price, signaling that the crypto market is at a critical technical juncture. With the normalization of returning volatility, the market will continue to reprice "risk appetite." For investors, focusing on the strong premium in precious metals and the liquidity squeeze in crypto assets will be a core strategy for navigating market uncertainty in the coming weeks.
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