The Red Market: Why Risk Assets Are Entering a Critical Phase
As we move into early 2026, the global macro environment is forming what can best be described as a perfect storm for risk assets.
Persistent inflationary pressure, renewed tariff and trade conflicts, and a Federal Reserve committed to maintaining restrictive monetary policy have significantly reduced global liquidity. The conditions that previously fueled aggressive bull markets—cheap money and excess leverage—are no longer present.
The crypto market is not merely experiencing a short-term pullback. Structural weakness is becoming increasingly evident.
Bitcoin is struggling to sustainably hold the $90,000 level, while the broader altcoin market continues to deteriorate. Many speculative assets remain down 60–70% from their recent highs, signaling capital flight rather than temporary volatility. At the same time, institutional investors appear to be reallocating toward traditional safe havens such as gold and high-quality bonds, leaving retail participants disproportionately exposed.
Key Risk Factors to Monitor:
• Liquidity Contraction: ETF flows remain negative, and there is little evidence of meaningful new capital entering the crypto ecosystem.
• Macro Pressure: Rising geopolitical tensions, trade disputes, and restrictive financial conditions are suppressing global risk appetite.
• Altcoin Deleveraging: Highly speculative projects are unwinding as investors shift toward capital preservation.
My View:
This environment resembles a market-wide repricing rather than a routine correction. Capital preservation should be the priority. Risk management is no longer optional—it is essential.
This is my personal opinion, not financial advice. Always assess your own risk tolerance and investment horizon.
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