The cryptocurrency market experienced a sharp risk appetite contraction over the past 24 hours.

BTC dropped nearly $4,000 within two hours, and the panic triggered by tariff expectations directly turned into selling pressure. The price rapidly retreated from its high levels, with short-term focus on whether it can stabilize again at 92K to 93K. The issue is that this decline might not just be a price correction—approximately $680 million in long liquidations triggered consecutively, turning a normal pullback into a chain of forced liquidations.

The symptoms across the market are clear: total market cap shrinking, different sectors taking turns being hammered, with GameFi being the first domino to fall. Market sentiment shifted instantly from "where moon" to "how to survive." Signs of deleverage are more evident than deteriorating fundamentals—this is a liquidity crunch signal, not necessarily bad news.

An interesting contrast is that gold hit new highs while crypto assets are being sold off as risk assets. Safe-haven capital is flowing into precious metals rather than digital currencies, and this divergence is unlikely to reverse in the short term. Any rebound is easily interpreted by the market as a chance to sell.

From a macro perspective, tariff uncertainties are re-pricing the market’s risk premium. The regulatory CLARITY Act has been shelved due to support waning, further amplifying policy uncertainty. Policy signals, personnel changes, and tariff trends—these variables act simultaneously, leading to false breakouts characterized by rapid rises and falls.

On-chain data shows no signs of a complete shutdown; AVAX’s daily active users hitting new highs indicate that funds have not fully fled, only risk appetite has been pulled back. Large holders showed more bullish signals in January, but in the face of macro storms, the key in the short term is when selling pressure will stop. Liquidation data continues to be refreshed, but liquidations are not the end—they push prices lower.

Trend judgment: Short-term bearish (risk aversion + leverage liquidations dominate, rebounds lack stability); medium-term remains neutral (waiting for macro panic to ease and liquidations to complete before turning bullish again).