At the start of the Davos Forum, the crypto market faced an impact. Bitcoin fell below $93,000, altcoins suffered severe declines, and in the past 24 hours, 240,000 traders were liquidated, with a total of $870 million evaporating instantly. What exactly is fueling this bloodbath behind the scenes?

The main trigger is the shift in macroeconomic sentiment. During Davos, Trump announced tariffs on the EU, which immediately responded with threats of retaliation. The escalation of trade disputes sent global capital into a panic. Risk assets experienced a sell-off, with large amounts of funds flowing into gold and other safe-haven assets, and cryptocurrencies, as high-risk assets, were hit hardest. Making matters worse, the correlation between Bitcoin and the US stock market has become increasingly tight; when US stocks weaken, crypto prices are immediately dragged down. Additionally, as US economic data improves and the Fed’s rate cut expectations are completely dashed, liquidity tightening has directly squeezed the growth space for the crypto market.

Regulatory pressure is also mounting. The US CLARITY Act faces numerous issues during its advancement; Coinbase CEO publicly expressed dissatisfaction, criticizing the bill for overly favoring centralized institutions. The European MiCA regulation has officially taken effect, significantly raising compliance thresholds, causing many small and medium-sized tokens to be aggressively sold off due to inability to meet requirements. Whales are also taking the opportunity to dump, with leveraged liquidations cycling repeatedly, making the downward trend difficult to reverse.

But markets always have their contrasts. Just as the crypto community is collectively lamenting, the RWA (Real-World Asset Tokenization) sector has begun to shine. BlackRock’s tokenization fund products have gained cross-collateralization eligibility, Ripple sponsored the Davos US Pavilion to showcase blockchain solutions, and the Bermuda government has teamed up with Coinbase and Circle to create a “On-Chain Economy” framework. The RWA sector’s market cap surged by 300% in a short period, surpassing $20 billion. The market is voting with its feet—while the entire market is falling, the RWA sector, with strong compliance and clear fundamentals, is absorbing funds.

How many people's mindsets have been tested by this market? Has your position withstood the volatility? Are you optimistic about the long-term potential of RWA? See you in the comments—share your real strategies and next steps.