Crypto Fear Index Hits 24 as $120B Wiped Out in 24 Hours on Tariff Shock
The cryptocurrency market had a sharp reversal on January 21, 2026 - a real knee-jerk reaction. The Crypto Fear and Greed Index...
Quick overview
- On January 21, 2026, the cryptocurrency market experienced a sharp reversal, with the Crypto Fear and Greed Index dropping to 24, indicating a significant shift from optimism to fear.
- The total crypto market cap fell by over $120 billion in just 24 hours, driven by a global sell-off of risk assets amid rising tensions in US trade policy.
- Major cryptocurrencies like Bitcoin and Ethereum saw significant declines, with Bitcoin falling below $90,000 and Ethereum trading below $3,000.
- Over 182,000 traders were liquidated in the derivatives market, totaling $1.08 billion, primarily from long positions as traders reacted to the sudden market volatility.
The cryptocurrency market had a sharp reversal on January 21, 2026 – a real knee-jerk reaction. The Crypto Fear and Greed Index had plummeted to 24 that day, a clear signal that investor optimism had evaporated and fear was now firmly in charge – just 7 days after it had been at 61, a number that now seems laughably optimistic. And what a stark reminder that investor confidence is still on thin ice – and that’s particularly true when you’re dealing with a market as volatile and sensitive to external pressures as this one is.
It all happened against a backdrop of a global sell-off across risk assets – and cryptocurrencies were among the worst hit as investors got cold feet and rapidly unwound their positions. According to the numbers, the total crypto market cap fell by over $120 billion in just 24 hours, more than a typical daily drawdown this month.
Tariff Risks Trigger Global Risk-Off Move
The trigger for the sell-off was a buildup of tensions in global geopolitics, specifically US trade policy. President Trump had been rattling markets earlier in the week with renewed tariff threats against the EU, and things got worse when US Treasury Secretary Steven Mnuchin said in Davos that tariffs would remain a key tool for the administration.
That reinforced the global risk-off vibe that had been building, with investors heading for safer assets and away from anything that looked too speculative. And of course, cryptos, being high-beta types, got clobbered.
JUST IN: $150,000,000,000 wiped out from the crypto market cap today. pic.twitter.com/29Cfa8KcM7
— Watcher.Guru (@WatcherGuru) January 21, 2026
Some of the key price action included:
- Bitcoin is falling below $90,000 and briefly touching $88,000
- Ethereum is trading below $3,000.
- Widespread weakness in the major altcoins
It’s a reminder of how sensitive cryptos are to global policy noise.
Liquidity Surges as Volatility Spikes
The derivatives market was just as much to blame – the level of leverage that traders had piled on left them exposed to sudden price swings and forced them into forced liquidations.
In the last 24 hours, there were:
- a staggering 182,000+ traders liquidated
- Total liquidations totaled $1.08 billion.
- 90% of that was from long positions, which is no surprise given that people had got a bit too carried away with the bullish vibe going into this sell-off
Clearly, the Crypto Fear and Greed Index has got a pretty clear reading on the market psyche now – and it’s not looking pretty. With fear firmly in the driving seat, it’s going to be a bumpy road ahead for a while yet, as investors reassess their risk and wait for some clarity on global trade policy.
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