Crypto Market Slides as Tariff Fears Trigger Global Risk-Off Sentiment

Major cryptocurrencies fell sharply on Monday as renewed concerns over potential U.S. tariffs weighed on global financial markets, prompting investors to pull back from riskier assets. The crypto market sell-off mirrored declines across equities and highlighted how closely digital assets are trading in step with broader macroeconomic sentiment.

Solana (SOL) led losses among large-cap tokens, sliding more than 6% in the past 24 hours. Dogecoin (DOGE) dropped over 7%, while XRP fell roughly 4%, according to CoinGecko data. Ether (ETH) also declined around 3%, hovering near the $3,200 mark. Bitcoin (BTC) proved relatively more resilient but still slipped about 2.5%, briefly falling below the $93,000 level.

The downturn followed comments from U.S. President Donald Trump over the weekend, in which he announced plans to impose a 10% tariff on goods from eight European countries starting Feb. 1. He added that tariffs could rise to 25% by June if no broader trade agreement is reached. The remarks unsettled investors and reignited fears of escalating trade tensions, pushing markets into a cautious, risk-off mode.

Crypto losses tracked weakness in global equities. U.S. equity-index futures fell sharply, with Nasdaq 100 futures down more than 1% in early trading. European futures also declined, while Asian markets were mixed but generally weaker. In contrast, traditional safe-haven assets rallied. Gold and silver reached record highs, European government bond futures climbed, and the U.S. dollar weakened against several major currencies as investors sought defensive positions.

The sell-off triggered a surge in liquidations across crypto derivatives markets. Data from Coinglass showed that roughly $600 million in bullish crypto positions were liquidated over the past 24 hours, with long positions making up the bulk of the wipeout. Bitcoin open interest declined as traders reduced leverage amid heightened uncertainty.

The pullback comes after a strong start to the year for cryptocurrencies. Bitcoin had surged to just under $98,000 last week, supported by robust inflows into U.S.-listed spot Bitcoin ETFs, while altcoins rallied alongside it. Monday’s decline suggests traders are reassessing exposure as macro risks re-emerge.

Altcoins once again absorbed most of the selling pressure, a common pattern during risk-off periods as investors rotate toward more liquid assets like bitcoin. Market participants are now closely watching whether BTC can hold support near $90,000, a level that could determine whether the broader crypto market stabilizes or faces deeper losses.