The crypto market loses 100 billion amid political tensions

Not long ago, the crypto market was still close to dizzying heights, flirting with $4,000 billion. Today, this euphoria has evaporated like the mist of a winter morning. In a few hours, political fear from Washington swept away investors' certainties. Between threats of shutdown, incendiary speeches and international tensions, the crypto-sphere is rediscovering that no asset is safe from the shocks of an increasingly unstable world.

Washington is bogged down, the crypto market is plummeting

The weekend turned into a nightmare for crypto traders despite the unexpected rise of the memecoin PENGUIN. In just seven hours, nearly $100 billion was lost from the global market. Originally, the threat of partial shutdown of the US governmentcaused by a political impasse between Republicans and Democrats. The latter refuse to vote on the budget of the Department of Homeland Security, accused of abuses after a tragedy that occurred in Minneapolis.

Senate Democratic Leader Chuck Schumer said:

Senate Democrats will not provide the votes needed to advance the appropriations bill if DHS funding is included in it.

Result: the markets panic, bitcoin falls by 3.4%, ether drops by 5%, and more than $360 million in leveraged positions are liquidated. On the Polymarket and Kalshi prediction platforms, the probability of a shutdown now reaches 80%, reflecting a climate of panic.

Between Trump and Tehran, geopolitics suffocates the crypto-sphere

For analysts, this correction is not a simple technical adjustment. It takes place in an atmosphere of extreme geopolitical tension, where the slightest statement from Donald Trump can shake bitcoin. The president has threatened to impose 100% tariffs on Canada if it enters into a trade deal with China. At the same time, the deployment of American ships in the Middle East has revived fear of conflict with Iran.

Rick Maeda of Presto Research analyzes:

The crypto market's movement earlier this week was driven by broad macroeconomic risk aversion rather than crypto sector-specific news.

In other words, crypto now follows real-world moods. When the White House goes up in flames, bitcoin falls. During the previous shutdown, in 2025, BTC had already plunged from $126,000 to $100,000. This scenario of political panic seems to be repeating itself, revealing the crypto market's dependence on American institutional shocks.

Gold shines, bitcoin fades: the promise of refuge crumbles

In the hours crypto was crashing, gold and silver were hitting new all-time highs. This contrast illustrates an inconvenient truth: despite its aura of “new digital gold”, bitcoin remains a risky asset, subject to market nervousness.

Vincent Liu, analyst at Kronos Research, observes that the markets remain on edge: the probability of a shutdown is now close to 75%, a direct consequence of the persistent political deadlock.

U.S. Bitcoin ETFs recorded more than $1 billion in net withdrawals in a week, their worst performance since 2025. Only a few bold players, like ARK Invest, continue to accumulate shares of Coinbase or Bullish, betting on the sector's long-term resilience. But for now, crypto is going through an acute crisis of confidence, dominated by fear, politics and global uncertainty.

The figures that sum up the storm

• $100 billion erased from global crypto capitalization in less than 7 hours;
• $87,689: price of bitcoin (BTC) at the time of writing;
• 5.3% drop for ether in 24 hours;
• 80% probability of a US shutdown according to Polymarket;
• $1.33 billion in withdrawals from US Bitcoin ETFs the week of January 23.

As confidence falters, some signs of recovery are emerging. Several players in the sector are banking on the return of tokenized stocks, an innovation that could reconnect traditional finance to blockchain. If the political winds calm down, this avenue could offer crypto a new lease of life, more concrete and sustainable.