January 21 News, the cryptocurrency market’s sentiment sharply turned sour under strong selling pressure, with the Cryptocurrency Fear and Greed Index falling to 24, officially entering the “Extreme Fear” zone. This change occurred after a brief rebound to the “Greed” zone last week, indicating that investor confidence has been severely shaken again in early 2026.
This emotional collapse is closely related to global macro risks. Recently, Trump reiterated threats of tariffs on the European Union, and US Treasury Secretary Scott Bessent also confirmed at the Davos Forum that tariffs will continue to be used as a geopolitical tool, triggering a collective correction in global risk assets. As a result, Bitcoin briefly fell below $90,000 and dipped into the $88,000 range, while Ethereum also lost the $3,000 mark. The total market capitalization of cryptocurrencies evaporated over $120 billion within 24 hours.
The volatility in the derivatives market has also been intense. Over the past day, more than 182,000 traders faced forced liquidations, with total liquidations reaching $1.08 billion, including nearly $990 million in long positions, indicating that leveraged funds are being rapidly wiped out during the decline.
Market sentiment deterioration is also reflected across social and data layers. The Fear and Greed Index combines multiple indicators such as price volatility, trading volume, market momentum, social media activity, Bitcoin market share, and Google Trends, now fully pointing to a risk-averse mindset.
Analyst Rex pointed out on X that investor interest in crypto assets has shifted from panic to indifference, with some long-term participants even transferring funds to stocks and commodities. This suggests a loss of confidence rather than a short-term correction. Meanwhile, another analyst, Doc, believes that although the sentiment may be worse than during the FTX collapse, Bitcoin still has significant asymmetric return potential. Once it bottoms out and rebounds, it could remain one of the most attractive risk assets in the capital markets.
Before geopolitical and macro policy directions become clearer, cryptocurrency market volatility is expected to remain high, and panic sentiment may continue to dominate short-term trading behavior.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Liquid Capital Founder Yi Lihua: Going All-In on Rebound, BTC Rebound to $85,000-$90,000 is a Reasonable Range
Liquid Capital founder Yi Lihua stated that he is preparing a new fund and adopting a full-position strategy to capitalize on rebounds, believing that BTC rebounding to $85,000 and $90,000 is reasonable. He shared his experience of over a decade in the crypto industry, emphasizing the importance of maintaining a positive mindset and conducting oneself with integrity.
GateNews13m ago
Slippage: The Most Underestimated Profit Killer in Trading
Author: CryptoPunk
Many crypto traders have experienced the same disappointment: strategies that appear stable and profitable in backtests quickly see their returns shrink when actually deployed, sometimes turning from profit into loss. The issue is often not "misjudging the direction," but underestimating trading costs, especially slippage.
In crypto markets where bull and bear phases switch more rapidly, volatility is more intense, and order books are more fragmented, slippage is not a trivial decimal point—it is the real threshold that determines whether a strategy can survive. A deviation of just 2 or 3 basis points can, in high-turnover strategies, completely wipe out the theoretical alpha.
Based on long-term backtests of BTC/USDT and ETH/USDT, this article aims to answer a very practical question: to what extent does slippage erode strategy returns, and which strategies are most likely to be killed by slippage?
1. Introduction: Why Slippage
PANews18m ago
Yesterday, Bitcoin spot ETF net inflows amounted to $199 million, with BlackRock's IBIT inflows of $139 million.
On March 16, Bitcoin spot ETFs recorded total net inflows of $199 million, with BlackRock's IBIT leading at $139 million in inflows, Fidelity's FBTC at $64.53 million, while Ark's ARKB and VanEck's HODL saw outflows of $3.07 million and $6.28 million respectively.
GateNews29m ago
10x Research: Bitcoin's Current Rally May Be Driven by Massive Bearish Options Unwinding
Bitcoin's rise was primarily driven by put option sellers at the $55,000 and $60,000 levels, with traders closing positions forcing market makers to buy Bitcoin. The rally lacked bullish call buying, though Bitcoin broke through $76,000 today, pushing the crypto market higher.
GateNews31m ago
"Stop shorting Bitcoin", analyst calls as new price targets emerge
Thạch Sanh
TapChiBitcoin36m ago
Bitcoin Holds Steady at $75,000: Macro Data and Fed Decision Approach Present Critical Test for Market
On March 16th, Bitcoin's price rose to $75,300, demonstrating resilience amid heightened global macroeconomic uncertainty. At this time, the market is reassessing asset allocation and discussing Bitcoin's potential as a safe-haven asset. Upcoming U.S. economic data releases will influence its near-term trajectory, with institutional perspectives indicating that Bitcoin may benefit from geopolitical risks.
GateNews39m ago
