<div id="readability-page-1" class="page"><div><div><p>Deng Tong, Jinse Finance<br/></p><p>On January 21, 2026, the three major US stock indexes closed sharply lower. The Dow Jones Industrial Average fell 1.76%, the S&amp;P 500 fell 2.06%, marking its largest single-day drop since October of last year, and the Nasdaq Composite fell 2.39%. Technology stocks generally fell, with Oracle and Broadcom falling more than 5%, Nvidia and Tesla falling more than 4%, and Amazon and Apple falling more than 3%. Market capitalization evaporated by more than $1.3 trillion in a single day.</p><p>The trend of &#34;selling America&#34; ​​has suddenly emerged.</p><h2>I. Why has a &#34;sell America&#34; ​​situation emerged?</h2><p>&#34;Sell America&#34; ​​trading refers to a market strategy in which investors simultaneously reduce their holdings of core dollar assets such as US stocks, US bonds, and the US dollar, and even short-sell dollar-related assets through derivatives, in order to avoid risks such as US macroeconomic policies, fiscal sustainability, and monetary credit. This is often accompanied by a shift of funds to traditional safe-haven assets such as gold and non-US currencies.</p><p>Tom Nakamura, head of fixed income and foreign exchange at Canadian investment firm AGF Investments, said the recent volatility in US Treasuries stemmed from two catalysts: First, the controversy surrounding Trump's pursuit of Greenland from Denmark triggered new tariff threats, exacerbating short-term growth concerns and raising expectations for policy easing, while amplifying long-term inflation and fiscal risks, pushing the yield curve steeper; second, the Japanese factor was equally crucial, with the market focused on whether Prime Minister Sanae Takaichi would introduce large-scale stimulus policies. 1. Geopolitical and Trade Tensions Trump covets Greenland and has demonstrated a tough stance. On January 21, US President Trump stated that his goal of controlling Greenland &#34;will never change&#34; and refused to rule out the possibility of taking Greenland by force. Trump clarified his purpose on social media: to seize sovereignty over Greenland from NATO ally Denmark. The previous day, in an interview, Trump refused to comment on whether he would use force to seize Greenland, saying &#34;no comment.&#34; In response to Trump's &#34;explosive acquisition,&#34; the Danish pension fund Akademiker Pension will exit the US Treasury market. As of the end of December, the pension fund held $100 million in US Treasury bonds. Its chief investment officer stated that the US is &#34;basically no longer a good credit destination.&#34; Going back further, Trump even resorted to tariffs against several European countries in his attempt to acquire Greenland. On January 17th local time, US President Trump announced via social media that due to the Greenland issue, starting February 1st, all goods exported to the US from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland would be subject to a 10% tariff. By June 1st, the tariff would increase to 25%. This tariff would continue to be paid until an agreement was reached on the &#34;complete and total purchase of Greenland.&#34; In his post, Trump stated that these eight countries &#34;have all gone to Greenland, for reasons unknown. Strong measures must be taken to end this potentially dangerous situation swiftly and decisively in order to protect global peace and security.&#34; Trump also stated, &#34;The United States has been working towards this deal for over 150 years. Many presidents have tried, and with good reason, but Denmark has consistently refused. Now, the need to acquire Greenland is particularly urgent due to the Golden Dome defense system and modern offensive and defensive weapons systems.&#34; In response to President Trump's tariff threats, eight European countries issued a joint statement on the 18th, stating that the threat of additional tariffs damages transatlantic relations and risks triggering a dangerous vicious cycle. The eight countries will respond with &#34;unity and coordination.&#34; Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the United Kingdom jointly signed the statement. The statement said, &#34;We stand firmly with the Kingdom of Denmark and the people of Greenland… We are willing to engage in dialogue based on the principles of sovereignty and territorial integrity.&#34; The eight countries will continue to respond to the US tariff threats in a &#34;united and coordinated&#34; manner, and &#34;we are firmly committed to safeguarding our sovereignty.&#34; The statement also addressed Trump's accusations regarding the &#34;Arctic Endurance&#34; military exercise, explaining that the exercise was pre-coordinated by Denmark and its allies, aimed at strengthening Arctic security, and aligned with shared transatlantic interests, posing &#34;no threat to anyone.&#34; Trump has already announced a 200% tariff on French wine and champagne, and French President Macron will join the peace committee. Following Trump's tariff threats, the EU is preparing to suspend the EU-US trade agreement, citing US President Donald Trump's vow to impose tariffs on countries supporting Greenland. Manfred Weber, chairman of the European People's Party (EPP), the largest political group in the European Parliament, said on Saturday that an agreement with the US is no longer possible. &#34;The EPP supports the EU-US trade agreement, but given Trump's threats regarding Greenland, approval is impossible at this stage,&#34; Weber posted on social media, adding that the EU's agreement to lower tariffs on &#34;US products&#34; &#34;must be suspended.&#34; The EU-US trade agreement was reached last summer by European Commission President Ursula von der Leyen and Trump. Parts of the agreement are already in effect, but it still requires formal approval from the European Parliament. If EPP lawmakers join forces with left-leaning political groups, they may have enough votes to delay or veto its ratification. Pepperstone analyst Michael Brown stated that Trump's new tariff threats against several European countries mark a sharp escalation in his efforts to acquire Greenland. The market reaction was largely in line with expectations, with stock index futures falling across the board, the dollar weakening in a mild &#34;sell-on-America&#34; ​​trade, and precious metal prices surging. Despite numerous uncertainties and the need to closely monitor European reactions, Brown believes this is Trump's old trick: first issue a dramatic threat, then escalate it significantly, forcing concessions and ultimately reaching some kind of agreement. For the market, this could mean some short-term volatility as news noise becomes deafening, but a rebound is expected when another &#34;TACO&#34; moment arrives. Brown believes this further solidifies the strong bullish case for precious metals. Equity fundamentals remain solid, providing opportunities to buy on dips. Bridgewater Associates founder Ray Dalio points out that Trump's policies could trigger a &#34;capital war&#34; because trade tensions and rising deficits have eroded confidence in US assets, forcing investors to turn to gold as a hedge. US Treasury Secretary Bessant stated: &#34;I believe the market downturn is primarily due to the unusual volatility of six standard deviations in the Japanese bond market over the past two days, reflected in their 10-year government bonds.  I have been in communication with Japanese economic officials and urged them to take necessary measures to stabilize their bond market. This volatility is spreading to all bond markets globally; German bond yields are rising, French bond yields are rising, and US Treasury yields are also rising. I reiterate that this is primarily due to problems in the Japanese bond market and has nothing to do with Greenland.&#34; 2. The Japanese Bond Market Storm The Japanese bond market storm is strongly correlated with the &#34;sell-off in America&#34; ​​trade. Japan is one of the largest foreign holders of US Treasury bonds. The surge in Japanese bond yields (the 40-year yield is projected to exceed 4% in January 2026) has increased the attractiveness of domestic assets. Japanese insurance companies, pension funds, and other institutions are reducing their holdings of US Treasury bonds and repatriating funds, directly weakening demand for US Treasury bonds. Yen carry trades are being closed out due to the narrowing interest rate differential between Japan and the US, with investors selling dollar assets to buy yen to repay debts. If Japanese bonds fall, US Treasury bonds and US stocks will also fall. Japanese Prime Minister Sanae Takaichi stated at a press conference on January 19th that she will dissolve the House of Representatives on January 23rd and seek voter authorization to continue governing, with a House of Representatives election to be held on February 8th. The current term of the members of the House of Representatives is originally scheduled to expire in October 2028. She also emphasized, &#34;We will end the excessively austere fiscal policy and must break free from the shackles of excessive austerity, boldly investing and managing risk.&#34; On January 20th, the bid-to-cover ratio for the 20-year Japanese bond auction hit a new low, triggering a &#34;buyer strike.&#34; The yield on Japan's 40-year government bonds rose 5.5 basis points to 4% on Tuesday, its highest level since issuance in 2007 and the first time in over three decades that the country's government bond yields have reached this level. This marks the first time Japanese government bond yields have climbed above 4% since December 1995, when the 20-year yield touched 4%. This rise reflects a broader sell-off in the Japanese bond market. Investors are concerned that the government's planned cut to the food sales tax could create a fiscal deficit, exacerbating the bond market decline. The &#34;Middle Way Reform Coalition,&#34; formed by the merger of Japan's largest opposition party and former ruling coalition members, has also proposed to raise the necessary funds to reduce the food sales tax to zero through a new government-related fund. Citigroup's Global Markets division points out that the sharp rise in volatility of Japanese government bonds &#34;could lead to increased volatility in other asset classes, particularly U.S. Treasuries, thus necessitating a reduction in overall portfolio size.&#34; Risk parity funds may need to sell up to one-third of their current risk exposure, potentially triggering a bond sell-off of up to $130 billion in the U.S. alone. These funds target equal volatility and allocate their funds across multiple asset classes, from stocks to bonds and commodities. II. The Impact of &#34;Selling Off in the U.S.&#34; on the Crypto Market The crypto market is under short-term pressure due to the &#34;sell-off in the U.S.&#34; BTC has reversed its rebound trend of the past few days, falling below the $90,000 mark, and is currently trading at $89,230.35, a 5.9% drop over the past 7 days. ETH fell below the $3,000 mark, trading at $2,965.85 as of press time, a 10.9% drop over the past seven days. Cryptocurrency-related stocks also came under pressure. Shares of cryptocurrency exchange Coinbase closed down 5.6%, and shares of stablecoin issuer Circle fell 7.5%. Shares of Strategy, the world's largest Bitcoin holder, fell 7.8%, while shares of BitMine Immersion, the world's largest Ethereum holder, plummeted 9.4%. Vincent Liu, chief investment officer at Kronos Research, stated that the decline was &#34;caused by a chain reaction of selling triggered by rising risk aversion and a surge in leverage.&#34; Escalating trade tensions between the US and Europe, weakness in the Japanese bond market, and reduced pension fund exposure to US Treasuries have all put pressure on global risk assets, including cryptocurrencies. Andri Fauzan Adziima, head of research at Bitrue, noted that traders are closely watching the key support level for Bitcoin between $87,000 and $88,000, warning that a break below this level could open the door to further declines to $85,000. Digital asset investment firm ZeroCap released a report on Tuesday stating, &#34;The market recovered relatively quickly, with Bitcoin stabilizing in this range, showing strong bottom support, and most of the macro 'noise' has already been priced in.&#34; The firm's analysts likened the current market pattern to an &#34;early risk appetite rotation,&#34; pointing to strong structural inflows from spot Bitcoin ETFs, which are more persistent than short-term positions.  Despite last week's net ETF inflows reaching their highest level in three months, other analysts remain cautious. Sean Dawson, head of research at on-chain options platform Derive, also expressed caution.  Fundstrat's head of research, Tom Lee, warned investors that the cryptocurrency and stock markets could experience a &#34;painful decline&#34; in 2026 due to geopolitical tensions, but a rebound is expected by the end of the year. Lee stated that 2026 will be similar to 2025, with the blockchain and AI sectors still benefiting, but the risks of tariffs and political divisions will initially limit sustained market gains.  Lee anticipates a potential 15% to 20% correction in the stock market this year, but stated, &#34;I think we'll have a strong finish to the year,&#34; partly due to the Federal Reserve's dovish stance and the end of last year's quantitative tightening. He also mentioned that the White House's selection of &#34;winners and losers&#34; could influence the performance of various industries this year. Regarding Bitcoin, Lee stated that he still expects it to reach a new all-time high this year, but did not mention his previous prediction of a $250,000 Bitcoin price in recent months.</p></div></div></div>

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<p>On January 21, 2026, US stock indexes experienced a significant sell-off, with the Dow Jones down 1.76%, S&P 500 down 2.06%, and Nasdaq down 2.39%, resulting in a loss of over $1.3 trillion in market capitalization. This "sell America" trend is attributed to geopolitical tensions, particularly President Trump's aggressive stance on acquiring Greenland, leading to tariff threats against several European countries. Investors are shifting to safer assets like gold and non-US currencies due to concerns over US macroeconomic policies and fiscal sustainability.</p>

- On January 21, 2026, major US stock indexes dropped significantly, with the Dow down 1.76% and the S&P 500 experiencing its largest decline since October.  
- The "sell America" trend emerged as investors moved away from US assets in response to geopolitical tensions, particularly involving Trump's Greenland acquisition threats, and rising Japanese bond yields.  
- This sell-off also impacted the cryptocurrency market, leading to significant drops in Bitcoin and Ethereum prices, as concerns over global risk assets heightened amid escalating trade tensions and monetary policy uncertainties.

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Why did a "sell-off of US stocks" occur, and what impact will it have on the cryptocurrency market?