Risk-Off Spreads, Crypto Stumbles
Bitcoin weakened on Tuesday (January 20th) as market participants again reduced risk following turmoil in the global bond market and escalating US-European tensions over Greenland. BTC fluctuated wildly during the intraday session, but remained down compared to the previous close.
At the latest monitoring, Bitcoin was around $90,518, down around 2.65% from its previous close (having touched the daily low near $89,880).
The pressure wasn't limited to Bitcoin. Ethereum fell to around $3,026 (around -5.9%), and Solana weakened to around $128 (around -4.0%). When liquidity dwindles and the market shifts to "risk-off," altcoins typically suffer more.
One trigger comes from the bond market. The yield on the 30-year US Treasury bond rose to around 4.93%, while Japan also experienced volatility: the 30-year JGB yield was around 3.88%, and the 40-year JGB yield even hit 4%. Yield spikes like this typically put pressure on risky assets, including stocks and crypto.
When risky assets weaken, capital flows are rushing to "safe havens." Gold held near record levels, with spot gold briefly hovering in the $4,726–$4,737/oz range on Tuesday. This is a strong signal that the market is opting for safe havens amidst increasingly unpredictable geopolitical and trade policy uncertainty.
Market participants are also assessing the political landscape: the US's threat of tariffs on several European countries over the Greenland dispute has reignited the "trade war" narrative. If these tensions escalate, concerns about global growth will also intensify—and that typically makes investors more selective about risky assets like crypto.
From a technical perspective, traders are now monitoring whether Bitcoin will retest lower support areas. If risk-off pressure persists and yields remain high, crypto volatility could "level out" again—even when the charts appear calm on the surface.
Source: Newsmaker.id
