On-chain Gold Maximalist Longs Silver Amid Market Volatility Triggered by EU–US Trade Tensions

On-chain data indicates that a trader known as 'Gold Maximalist' placed a long position order to open a long Silver contract at a limit price of $84 on January 19, 2026. This move coincided with a broader market selloff in crypto and equities, driven by escalating trade tensions between the EU and the US.

Over $800 million in leveraged positions were liquidated across crypto markets in the past 24 hours, with 90.5% of these being long positions. This sharp correction was attributed to the intensifying risk-off sentiment as EU capitals weigh retaliatory measures against U.S. tariffs. Bitcoin (BTC) dipped below $93,000, dragging major altcoins like Ethereum (ETH) and Solana (SOL) lower.

The EU is reportedly considering tariffs of up to $101 billion on the U.S., while President Trump has imposed 10% tariffs on goods from eight European countries. These developments have raised concerns about global economic stability and prompted a flight to safety in markets.

Why Did This Happen?

The growing EU–US trade tensions intensified risk-off sentiment among traders, leading to a significant correction in risk assets such as cryptocurrencies. This risk-off environment was further fueled by fears of broader economic impacts, particularly in capital markets. The fear and greed index fell to 44 from a recent high of 61, indicating a shift toward caution.

In response to the tariffs and trade uncertainty, investors have been shifting capital to more defensive assets. The on-chain trader's decision to go long on Silver at $84 suggests an expectation that precious metals may act as a hedge against geopolitical and economic volatility.

How Did Markets React?

Across the crypto market, leveraged long positions were disproportionately affected. The largest liquidation came from a $25.83 million BTCUSD contract on Hyperliquid. This trend highlights the vulnerability of bullish positions in a rapidly shifting market environment.

In the equity markets, investors also reacted to trade tensions. Several Indian stocks reported mixed results in Q3 FY26, with some showing strong growth and others experiencing sharp declines. For instance, Yes Bank reported a 55.4% YoY increase in net profit, while Tata Technologies saw a 95.99% drop in consolidated net profit.

Market participants in India have also turned their attention to the upcoming Union Budget on February 1, where they are expected to push for tax relief. This includes proposals to raise the LTCG exemption limit from Rs 1.25 lakh to Rs 2 lakh and to simplify definitions of "long-term" across asset classes.

What Are Analysts Watching Next?

Analysts are closely monitoring both the trajectory of the EU–US trade dispute and the potential impact of the Indian Budget on capital market taxation. The fear is that further escalation in tariffs could trigger a broader sell-off across global markets. Additionally, any policy measures that favor long-term investing may influence retail participation and asset allocation.

On the crypto side, the behavior of on-chain traders and the movement of positions into safer assets like Silver will be key indicators of market sentiment. The trader known as 'Gold Maximalist' may represent a growing trend of investors diversifying into precious metals as macroeconomic uncertainties persist.

Investors are also watching for clarity around import duties on gold and silver in India. These commodities are often used as hedging instruments against rupee depreciation and equity volatility.

Meanwhile, in China, hedge funds focused on the region achieved strong returns in 2025, with the average China-centric fund up nearly 18%. However, investors are wary of how U.S.–China trade dynamics will evolve in 2026, especially regarding chip agreements and geopolitical risks.

The coming weeks will see the Union Budget address these concerns, and markets are closely watching for signals on capital gains tax, transaction taxes, and import duties. These measures could influence both domestic and international investor behavior significantly.

As of now, the risk-off sentiment persists, and the market is awaiting key policy developments and macroeconomic clarity to determine the next steps for both crypto and equity investors.