The crypto market is crashing today, January 29, with Bitcoin and most altcoins being in the red, and the valuation of all coins dropping to over $2.8 trillion.
Summary
- The crypto market crashed on Thursday as gold and crude oil prices jumped.
- The slump happened as odds of an attack on Iran rose.
- Bitcoin and other cryptocurrencies are not seen as safe-haven assets.
Oil, gold rally as crypto crashes
- Bitcoin (BTC) price dropped to $87,000 from the year-to-date high of $94,000.
- Ethereum (ETH) token dropped to $2,930
- Binance Coin (BNB) fell to $890.
- The top laggards in the crypto market over the last 24 hours were Chiliz, River, Render, Mantle, and LayerZero, which dropped by over 7%.
Notably, the ongoing crypto market crash coincided with the surge in the prices of gold. Ed Yardeni predicts it will reach $10,000 by the end of the decade. So far, it has jumped by double digits this year as ETF inflows rose.
Meanwhile, crude oil prices continued rising, with Brent, the global benchmark, crossing the $70 mark for the first time in months. It has jumped by nearly 20% from its lowest level this year.
Meanwhile, Polymarket shows over 70% odds that President Donald Trump will attack Iran before the year’s end
In a statement on Wednesday, Trump warned the Iranian regime to start negotiations with the U.S. to end its nuclear program.
Just a few months ago, Trump said that the nuclear program was fully obliterated after his attacks on key locations.
Iran has insisted that it will retaliate against any attack from the U.S., a move that will lead to higher crude oil prices. It will also risk a prolonged war in the region.
Crypto market ahead of US government shutdown
Democrats insist that any spending package must include real reforms to the Department of Homeland Security and its agencies, such as U.S. Immigration and Customs Enforcement (ICE).
Therefore, the crypto market crash is occurring because Bitcoin has proven not to be a safe-haven asset.
In the past crises, investors have preferred other assets like gold and the Swiss franc. Bitcoin price dropped sharply in April last year when Trump launched his reciprocal tariffs. It also slumped in October when he threatened tariffs on China.