The cryptocurrency market experienced a sharp decline on Monday, January 19, during the early Asian trading session. Bitcoin, which had recently surged to $97,000, fell below $92,000, while Ethereum and Solana also saw significant drops, falling below $3,200 and $140, respectively. Coinglass data reported approximately $593 million in liquidations over four hours, with nearly 90% from long positions, highlighting a bearish market sentiment.
The downturn is attributed to rising expectations of a shift in Federal Reserve policy from dovish to hawkish, alongside geopolitical tensions involving Greenland and U.S.-Europe tariffs. Additionally, the stalled progress of the crypto-friendly CLARITY bill in the Senate has further dampened risk appetite. Analysts suggest the market reaction is more of an emotional pullback due to profit-taking rather than a fundamental trend reversal.
Crypto Market Dips Amid Fed Speculation and Geopolitical Tensions
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