- $230 billion lost in crypto market cap.
- Triggered by macroeconomic and geopolitical factors.
- BTC, ETH, SOL faced notable declines.
A massive $230 billion was erased from the cryptocurrency market cap on January 31, 2026, primarily due to market declines in Bitcoin, Ethereum, and Solana triggered by several macroeconomic factors.
This drastic reduction underscores vulnerabilities within the cryptocurrency sphere, influenced by geopolitical tensions and policy shifts. Immediate market reactions highlight significant price declines in major cryptocurrencies and elevated liquidation levels.
The cryptocurrency market witnessed a substantial decline, with a $230 billion drop in market capitalization. Leading cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH) saw sharp declines due to geopolitical tensions and economic shifts.
During this period, contributing factors included potential policy shifts by the U.S. Federal Reserve and tariffs announced by President Donald Trump.
BTC fell below $78,000, while ETH dropped under $2,400. SOL also saw significant losses during this period.
Overview of Market Fluctuations
Impacts of this market downturn were felt across various sectors, influencing industrial and global market stability. The U.S. tariff announcements led to an 8% decline in market value, bringing BTC valuation to concerning levels.
The decline led to $2.5 billion in derivatives liquidations, mainly affecting long positions. Furthermore, Bitcoin and Ethereum ETFs experienced outflows of $571 million and $230 million, respectively, amplifying the market’s volatility.
Effects on Derivative Markets
Derivative markets faced major stress with hyperliquidations reacting to fluctuating values. BTC’s historical lows against the gold ratio reflect broader economic anxieties among investors.
“The activities attributed to the Lazarus Group have direct implications for specific digital assets like Solana, contributing to substantial market losses.”
Analysts suggest potential stabilization in the coming weeks. Historical trends and on-chain data indicate a tendency for market rebounds post-similar events, but regulatory and monetary policies could play pivotal roles in dictating recovery pace.
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