After the sudden emergence of political turmoil at the Davos Forum, the market showed signs of recovery, and cryptocurrency prices rebounded from a sharp decline. Initially, the impact caused by geopolitical tensions led to a crash in Bitcoin and altcoin prices, with leveraged cryptocurrency trading liquidations exceeding $600 million. Although the cancellation of tariff threats caused stock indices and cryptocurrency prices to recover somewhat, market sentiment remained cautious, and trading volumes were relatively light. This event highlights how geopolitical news can quickly influence the cryptocurrency market, causing volatile swings in leveraged positions, and serves as a reminder that traders' risk appetite remains fragile.

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