Daily Market Update: Markets Crash on Tariff Fears and Japan Bond Crisis

TLDR

• Bitcoin fell below $90,000 while Ethereum dropped to under $3,000 as Trump’s tariff threats sparked a global market selloff on Tuesday
• Stock indexes posted their biggest losses since October with the Dow falling over 850 points and S&P 500 and Nasdaq both dropping more than 2%
• Crypto traders saw $1.09 billion in liquidations with 92% being long positions as investors rushed to exit risky trades
• Trump threatened 200% tariffs on French products and warned European nations over his Greenland acquisition push
• Gold hit record highs as investors moved money into safe haven assets away from stocks and cryptocurrencies

Global markets suffered heavy losses on Tuesday as President Donald Trump’s threats of new tariffs triggered selling across stocks and cryptocurrencies. Bitcoin dropped below $90,000 while major stock indexes posted their worst session in months.

The selloff hit crypto markets hard with Bitcoin falling 3% over 24 hours. Ethereum declined 6.5% to trade below $3,000 for the first time in weeks.

Solana lost more than 4% on the day and over 12% for the week. Cardano dropped around 2% in 24 hours and roughly 15% over seven days.

Stock markets faced similar pressure during Tuesday’s trading session. The Dow Jones Industrial Average plunged more than 850 points while the S&P 500 fell over 2%.

The Nasdaq Composite also dropped more than 2% as technology stocks led the decline. All three major indexes recorded their worst daily performance since October 10.

The S&P 500 and Nasdaq both moved into negative territory for 2026. U.S. Treasury yields jumped sharply with the 10-year yield briefly topping 4.3%.

Greenland Dispute Triggers Market Panic

The market chaos began after Trump renewed his push for U.S. control of Greenland. He warned European nations that oppose the plan could face trade tariffs or economic retaliation.

Trump wants Greenland under U.S. control to counter Russian and Chinese influence in the Arctic. He also cited strategic shipping routes and mineral access as key reasons.

French President Emmanuel Macron declined a role on Trump’s proposed “Board of Peace” for Gaza. Trump responded by threatening 200% tariffs on French wine and champagne.

The tariff threats raised concerns about potential trade conflicts and policy uncertainty. Bond markets reacted with selling pressure that pushed yields higher across the globe.

Japanese government bonds also sold off sharply on Tuesday. Yields on long-dated Japanese debt jumped to record levels on fiscal sustainability concerns.

Higher bond yields increase borrowing costs and make risky investments less attractive. This dynamic pushed investors away from both stocks and cryptocurrencies.

Crypto Positions Face Mass Liquidations

Crypto traders experienced over $1.09 billion in liquidations during the 24-hour period according to CoinGlass. Nearly 92% of these liquidations came from long positions betting on price increases.

The liquidation numbers showed how crowded bullish positioning had become before the selloff. Altcoins dropped faster than Bitcoin as traders cut exposure to higher-risk tokens first.

Bitcoin serves as the main entry and exit point for crypto markets. The price fell as leveraged positions were forced to close during the volatility.

Gold prices surged to fresh all-time highs as money flowed into traditional safe havens. The move confirmed investors were rotating away from risky assets entirely.

Stock futures rose modestly on Wednesday morning with Dow futures up 0.2%. S&P 500 futures climbed roughly 0.4% while Nasdaq futures gained around 0.4%.

Trump is scheduled to speak at the World Economic Forum in Davos on Wednesday. Investors will monitor his comments for clues about trade policy and market direction.

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