Emre Yumlu 
The cryptocurrency market has entered the new week under notable selling pressure. Over the past 24 hours, total crypto market capitalization has declined by approximately $45 billion, falling to around $3.09 trillion. Bitcoin has led the downturn, with losses spreading broadly across the altcoin market. At the core of this move are renewed global macroeconomic concerns, which are weighing heavily on risk sentiment.
Trade War Fears Resurface
The primary catalyst behind the recent weakness has been the re-emergence of trade tensions between the United States and the European Union. U.S. President Donald Trump announced that, starting February 1, a 10% tariff will be imposed on imports from eight European countries. This announcement has significantly reduced investors’ appetite for risk-oriented assets.
Adding to the uncertainty, U.S. officials signaled that if ongoing disputes related to Greenland are not resolved, tariffs could be increased to as high as 25% by June. In response, the European Union is reportedly preparing retaliatory measures that could reach up to $100 billion. This escalating rhetoric has reinforced a global “risk-off” environment, putting additional pressure on cryptocurrencies and triggering double-digit declines in some altcoins.
Total Market Cap Approaches Key Levels
From a technical perspective, the current price action raises the risk of a deeper pullback in total crypto market value toward the $3.05 trillion support zone. A clear break below this area could accelerate selling momentum and open the door for a move toward the psychologically important $3 trillion level.
Conversely, if selling pressure begins to ease, the market may attempt to stabilize around the $3.09 trillion region in the short term. Whether this zone can hold will likely depend on broader macro developments rather than crypto-specific news.
Bitcoin (BTC) Tests Critical Support
Bitcoin has retreated from its recent highs near $97,000 and is currently trading around $91,250. With bullish momentum fading, selling pressure remains visible. The $90,000 level stands out as a crucial psychological and technical support area.
While BTC is still trading above its 50-day exponential moving average and its primary uptrend line, a loss of these supports could increase downside risk. On the other hand, holding above current levels may allow for a short-term relief bounce, provided broader market sentiment improves.
Positive Fundamentals Take a Back Seat
Despite the near-term weakness, longer-term structural developments remain constructive for the crypto sector. Initiatives such as Bermuda’s ambition to build a fully on-chain national economy and the New York Stock Exchange’s plans around tokenized securities and 24/7 trading highlight ongoing institutional progress. However, in the current climate of macro uncertainty, these positive signals are struggling to translate into price support.
For now, the direction of the crypto market will continue to be driven largely by global trade dynamics and macroeconomic headlines. As long as uncertainty persists, elevated volatility is likely to remain a defining feature of the market.
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