Altcoin Bloodbath: Geopolitical Shock Wipes Out Billions in 48 Hours
Altcoins suffered an intense wave of selling late on Jan. 20, driving combined market capitalization briefly to $1.26 trillion before consolidation slightly above that level. The move came amid renewed geopolitical tensions that prompted risk-off flows across risk assets, accelerating liquidation in smaller, less liquid tokens and sending prices sharply lower in a short window.
The drop highlights altcoins’ vulnerability to macro shocks and thin liquidity — a rapid unwind can wipe out billions and amplify volatility in DeFi and NFT-linked tokens. Traders and portfolio managers will be watching for sustained consolidation or follow-through selling, while market participants weigh whether the partial rebound signals stabilization or the start of a longer correction.