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Cryptocurrency prices fell sharply on Monday, dragging the total market value down to about $3.04 trillion, a decline of more than 3% in 24 hours. The sell-off hit major tokens including Bitcoin, Ethereum and XRP, as investors reacted to global economic uncertainty and a wave of forced liquidations.
Bitcoin slipped to around $90,600, Ethereum fell more than 5% to near $3,030, and XRP dropped below the $2 level, trading close to $1.91.
Market maker Wintermute said the drop followed a sharp reversal from last week’s rally. Bitcoin had broken above $95,000 on January 19, reaching nearly $98,000 for the first time since November. The move was supported by strong spot ETF inflows of about $1.4 billion for the week, including $760 million in a single day, and softer U.S. inflation data showing Core CPI at 2.6%, its slowest pace since 2021.
However, the rally lost momentum after fresh tariff headlines from the United States raised fears of renewed trade tensions. Bitcoin quickly fell back toward $92,000, triggering around $850 million in long liquidations, roughly half of which came from Bitcoin and Ethereum positions.
The broader crypto market weakened as leveraged traders were forced out of positions. More than $360 million in liquidations were recorded across digital assets in the past 24 hours, adding to downward pressure, particularly on Ethereum and large-cap altcoins.
Analysts said crypto had recently broken out of a tight 50-day trading range, leaving prices more vulnerable to sudden macro shocks when sentiment turned.
Beyond price action, several regulatory and institutional developments are shaping the medium-term outlook. The U.S. CLARITY Act has stalled after disagreements between Coinbase and the White House over stablecoin provisions, reducing near-term regulatory certainty.
At the same time, Goldman Sachs confirmed it is actively exploring tokenization and stablecoin technology. South Korea passed amendments establishing a legal framework for tokenized securities, while the New York Stock Exchange said it is examining 24/7 trading through tokenization.
Investors are now focused on a busy week of global events. These include the World Economic Forum in Davos, where U.S. President Donald Trump is attending for the first time in six years, an EU emergency summit on Thursday, and the release of U.S. Core PCE inflation data on Friday, the Federal Reserve’s preferred inflation gauge.
Wintermute said the recent sell-off was “violent but healthy,” explaining that leverage was cleared quickly without triggering a broader collapse. The question now is whether Bitcoin can hold the low-$90,000 range. If it does, the recent breakout could remain intact. A sustained move below $90,000 could turn previous support into resistance.
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