The crypto market capitalization was down 1.97% in the past 24 hours and was at $3.05 trillion at the time of writing. It was down 6.95% since the 14th of January.
Bitcoin [BTC] fell below the $94.5k level on the 19th of January, forcing market-wide selloffs.
U.S. President Donald Trump signaled tariff action against Europe, and this latest tariff-driven uncertainty helped explain why crypto is down today. Kobeissi Letter noted in a post on X that the U.S. stock market futures extended their session losses, too.
The Nasdaq 100 fell 1.6% amid trade war concerns. On the 19th of January, $700.5 million in positions were liquidated, followed by $301.7 million the next day at the time of writing.
Institutional demand vs. spot and derivatives seller dominance
Bitcoin is usually a good indicator of the crypto market sentiment. Altcoins sometimes act like leveraged BTC contracts and witness amplified moves in the same direction as Bitcoin.
They have generally reacted much more bearishly than Bitcoin, which explained why the Bitcoin Dominance has climbed slightly higher in the past six weeks. While Bitcoin can see sparks of sustained spot ETF inflows, such as last week, it does not guarantee a steady bullish trend.
Institutional demand was also going strong. CoinGecko Bitcoin Treasury data showed sizeable Bitcoin additions to holdings from Strategy [MSTR] and Metaplanet. AMBCrypto reported that Saylor hinted at another acquisition, having added 13,627 BTC to its reserves on the 12th of January.
Once more, this is not enough to sustain an uptrend.
Crypto analyst Axel Adler Jr revealed that sellers had regained control of the derivatives after weeks of bullish pressure. The Taker Buy/Sell Ratio showed that the 90-day taker aggression Z-score of -1.81 corresponded to a seller-dominant regime.
The metric’s recovery toward neutral levels would be an encouraging sign that the market sell orders were decreasing. For now, further downside is possible in the coming days.
Final Thoughts
- Crypto is down today due to a combination of reasons, primarily the US-EU trade war that has led to a risk-off market sentiment.
- Bitcoin taker sell pressure has mounted since Monday’s sell-off, and more losses are possible in the coming days.