Trade war concerns pressure, crypto market plummets, BTC drops below $88,000

YieldWhisperer · 2026-01-20T23:50:12+00:00

Recently, the trade tensions between the US and Europe have intensified, and the risk aversion sentiment in the crypto market has spread. Bitcoin fell below $88,800, with a market cap evaporating by 4.6%. Altcoins performed poorly, with many coins experiencing significant declines. Crypto concept stocks were also heavily impacted, and overall risk assets were affected by macroeconomic concerns.

YieldWhisperer

2026-01-20 23:50:12

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【Blockchain Rhythm】As trade tensions between the US and Europe escalate, market risk aversion sentiment is spreading to the crypto sector. Last night, the crypto market collectively declined, with Bitcoin falling below the $88,800 mark, now trading around $88,430. Ethereum also weakened, hitting a low of $2,920, and is currently consolidating at $2,943. The total market capitalization of cryptocurrencies evaporated by 4.6% in one day, shrinking to $3.072 trillion.

In terms of coin performance, altcoins have become the hardest hit in this decline. Binance Coin led the 24-hour decline list, dropping 19.3% to $0.172; ROSE followed closely, down 17.5%, with a price of $0.0165; PHB, MORPHO, STO, and others also declined, with drops of 13.6%, 11.02%, and 10.98%, respectively.

Crypto-related stocks in the US stock market also suffered heavy losses. The S&P 500 index closed down sharply by 2.06% overnight, the largest single-day decline since October last year; the Dow Jones fell 1.76%, and the Nasdaq dropped 2.39%. Crypto companies listed on US exchanges saw their stock prices plummet collectively: BitMine Immersion (BMNR) led the decline with a 9.39% drop; SharpLink Gaming (SBET) followed with a 9.59% decrease; Marathon Digital (MARA) and Circle (CRCL) fell 8.71% and 7.45%, respectively; a well-known trading platform (COIN) declined 5.57%; Riot Platforms (RIOT) dropped 5.93%.

Overall, macro trade concerns are suppressing the performance of risk assets, with the crypto market, as a high-risk asset class, bearing the brunt. In the short term, market sentiment still needs to observe the development of the international situation.

BTC-2,12%

PHB-0,64%

MORPHO-4,15%

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MintMaster

· 10h ago

Here we go again. Whenever a trade war erupts, the crypto world gets sacrificed, and altcoins are directly harvested. BTC can still hold on, but those small coins are really miserable, with a 19% drop being outrageous. If this pace continues, how many more people will dare to chase highs later on?

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DarkPoolWatcher

· 10h ago

When the trade war starts, altcoins die first. This trick is getting old. Are they trying to scam small investors like us again? Been seeing through it for a long time. Whenever the market crashes, they blame macro factors. Honestly, it's the whales dumping the market. At this point, I want to buy the dip, but I lack the courage haha. Let's wait and see; it feels like it will drop further.

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HappyToBeDumped

· 11h ago

Is it dropping again? Trade wars really are a nightmare for the crypto world. Altcoins are suffering one after another. After this wave of liquidation, where will the next one be? I just want to know when I can bottom out, or should I wait a bit longer? The secondary market is unlivable, everyone. Watching others bottom out and get rich, I can only watch the charts. If it doesn't rebound this time, and doesn't go above 88500, it's over. I'm exhausted.

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GasFeeCryBaby

· 11h ago

Whenever a trade war occurs, the crypto market becomes a scapegoat for safe-haven assets. Altcoins are really suffering this time, with some being cut in half directly.

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