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The crypto market was still reeling from losses on Monday as investors fled to gold amid fresh geopolitical and macroeconomic concerns that dampened investor appetite in the sector.<\/p>\n
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According to data from crypto.news, the global crypto market fell below the $3 trillion mark for the first time since the beginning of the year, slumping nearly 3% as fresh macroeconomic and geopolitical factors spooked investors.<\/p>\n
The Crypto Fear and Greed Index<\/a> fell another five points to 20 on Monday, marking six consecutive days of extreme fear across the sector.<\/p>\n Bitcoin (BTC) fell 3% to an intraday an intraday low of $86,126 earlier today before recouping part of its losses as it managed to stabilize at $87,700 when writing. Ethereum (ETH), the largest altcoin in the market, was still down 3% at press time, trading at around $2,850, while other large-cap cryptocurrencies such as BNB (BNB), XRP (XRP), Solana (SOL), and Dogecoin (DOGE) were also in the red with losses ranging between 1-4%.<\/p>\n Data<\/a> from CoinGlass shows this slump triggered $605 million in liquidations of bullish bets over the past 24 hours, led by $179.8 million in Bitcoin futures and $203.6 million in Ether-based futures.<\/p>\n <\/p>\n The market tanked largely due to fears of a U.S.-Canada trade war. Market sentiment soured after President Donald Trump threatened a 100% tariff on all Canadian imports, warning the U.S.\u2019s top trading partner against finalizing a free trade agreement with China after Canadian Prime Minister Mark Carney\u2019s high-stakes visit to Beijing.<\/p>\n Investors remain wary as they recall the market volatility during the escalation of the U.S.-China trade war in October last year, when Bitcoin fell significantly following the Oct. 10 crash.<\/p>\n Concerns about another potential U.S. government shutdown are also impacting the market. Investor appetite for crypto has decreased after Senate Democrats threatened to block a $1.2 trillion funding package if it includes funding for the Department of Homeland Security without significant reforms. This situation arose from ongoing protests in Minnesota following a fatal shooting involving federal agents.<\/p>\n As a result, there is a risk of a shutdown by the Jan. 31 deadline. Prediction markets like Kalshi showed<\/a> odds of a shutdown had surged from 10% on Saturday to over 76% on Monday. At the same time, Polymarket odds reached 80%.<\/p>\n During the previous U.S. government shutdown spanning from the beginning of October to Nov. 12, Bitcoin fell nearly 21% from its all-time high to around $100,000, driven by prolonged political deadlock in Washington and Trump\u2019s tariff threats on China, which triggered the Oct. 10 crypto market crash.<\/p>\n Gold has strongly outperformed Bitcoin since the crash, as traders appear to favor traditional safe-haven assets over volatile digital currencies, which has continued into the new year.\u00a0<\/p>\n Gold recently broke above the $5,000 milestone, marking over 17% gains so far in 2026, a sharp divergence from Bitcoin\u2019s price action, which remains 30.4% below its record high of $126,080 hit in October last year.<\/p>\n <\/p>\nCrypto market in panic after US threatens tariffs on Canada<\/h1>\n
Fear of another US government shutdown grips market<\/h2>\n