Mainstream cryptocurrencies such as BTC, SOL, ADA face pressure

On Monday, the global financial markets experienced turbulence again. Due to the U.S. government’s announcement of increased tariffs on eight European countries, the crypto market, as a frontline risk asset, faced a concentrated sell-off.

The event summary is quite clear. The U.S. side, frustrated by setbacks in its island purchase plan, announced that starting February 1st, it will impose a 10% tariff on Denmark, Germany, France, the UK, and other eight countries, with the possibility of further increases up to 25%. The EU immediately initiated preparations for retaliatory measures worth nearly 100 billion euros, causing sudden tension in global trade.

How aggressive was the market reaction? The total crypto market cap dropped 6% within just one hour. BTC fell below $92,000 from the $95,500 level, with little buffer in between. SOL declined over 6%, and ADA approached a 10% drop. The liquidation in the derivatives market was even more severe — over $680 million in forced liquidations within 24 hours, wiping out the positions of more than 230,000 long investors.

Where did the problem originate? Policy uncertainty triggered risk-averse behavior among investors. A large amount of capital is flowing from the crypto space into traditional safe-haven assets, with gold prices hitting new all-time highs. There is a deeper expectation behind this — rising tariffs could push inflation higher, and the Federal Reserve might adjust its planned rate cut pace, which puts long-term pressure on the crypto market that relies on a loose liquidity environment.

In short, macro risk events → flight to safety funds → tightening liquidity expectations. This chain of logic is accelerating. Short-term volatility is inevitable; the key is to observe the final implementation of policies and the pace of market sentiment recovery.