Ethereum price dropped below $2,900 for the first time in 5 weeks as recent geopolitical concerns drove investors away from the crypto market. According to data from crypto.news, Ethereum (ETH) fell to an intraday low of $2,872 on Thursday morningβ¦
Crypto prices today edged higher as easing geopolitical tension helped stabilize risk appetite, even as sentiment indicators remained deep in fear territory. The total crypto market capitalization rose 0.8% to about $3.12 trillion. Most of the major tokens traded inβ¦
Bitcoin slipped below the $90,000 level as global markets reacted to rising macroeconomic tension between the United States and the European Union. Investors are closely watching the latest trade headlines, as renewed tariff threats increase uncertainty around global growth, corporate earnings, and inflation dynamics. When friction between major economies escalates, risk appetite typically fades, and crypto tends to feel the impact fast as traders reduce exposure and cut leverage.
According to an analysis by XWIN Research Japan, Bitcoinβs recent weakness fits a broader pattern that has been developing since 2025. The report argues that the Trump administrationβs renewed tariff push has acted as a consistent downside pressure for BTC, mainly because tariffs influence multiple pillars of the macro environment at once. Higher tariffs can squeeze company margins, disrupt supply chains, and push inflation expectations higher, which complicates the outlook for interest rates and monetary policy.
In this environment, Bitcoin has continued to behave more like a macro-sensitive risk asset than a defensive hedge. Instead of attracting safe-haven flows, BTC has often moved in sync with equities during trade-driven risk-off waves. As a result, even brief bursts of bullish momentum have struggled to hold when economic uncertainty rises and capital rotates into safer positioning.
Tariff Risk Keeps Bitcoin Tied to Macro Conditions
The XWIN Research Japan report explains that several Bitcoin pullbacks between 2025 and 2026 aligned with periods of rising economic uncertainty driven by tariff hikes and trade frictions. During these episodes, BTC declined alongside equities, reinforcing that the market still treats Bitcoin as a macro-sensitive risk asset rather than a defensive hedge. Instead of decoupling during stress, Bitcoin often reacts like a high-beta instrument when traders rush to reduce volatility in their portfolios.
Economic risk tends to hit Bitcoin quickly because investor behavior adjusts fast. As uncertainty around growth and interest rates increases, capital typically shifts toward short-term protection. In that process, Bitcoin is frequently viewed as a liquid asset that can be sold temporarily to lower portfolio risk, rather than a long-term store of value that benefits from risk-off flows. This dynamic can amplify downside moves even when long-term fundamentals remain intact.
Exchange Netflow provides a supplementary layer of evidence. During correction phases, brief spikes in exchange inflows often appear, consistent with tactical repositioning and short-term profit protection. However, these inflows have not persisted, suggesting the absence of sustained structural selling pressure.
For now, the base scenario remains that tariff-driven economic risk is weighing on Bitcoin. If exchange inflows become sustained and supply-demand conditions weaken further, that assessment would need to be reassessed.
BTC Holds Its Ground After Breaking Below $90K
Bitcoin is trading around $88,800 on the weekly chart after a sharp selloff that briefly pushed price below the $90,000 psychological level. This drop marks a clear shift in momentum, as BTC failed to hold the mid-range structure that supported price action throughout the late-2025 consolidation phase. The weekly candle shows heavy downside pressure, with sellers rejecting attempts to stabilize above $92,000 and forcing a retest of lower demand.
Technically, Bitcoin remains trapped between key moving averages. Price is still below the blue long-term trend line, which has acted as dynamic resistance since the breakdown from the $100,000+ region. At the same time, BTC is holding above the green moving average, suggesting that while the market is weak, longer-term buyers are still defending the broader uptrend structure.
This creates a fragile equilibrium: as long as Bitcoin holds above the current support zone, bulls can attempt to rebuild a base and reclaim $90,000-$92,000. However, if volatility expands and the market loses the green trend line, it would expose BTC to a deeper correction toward the mid-$80,000s, where previous demand briefly stepped in during the prior drawdown.
Featured image from ChatGPT, chart from TradingView.comΒ
The bitcoin price experienced several intraday spikes on Wednesday, swinging by several thousand dollars as traders reacted to shifting geopolitical headlines and fresh comments from U.S. President Donald Trump.
The worldβs largest cryptocurrency started the day near $88,000 before surging above $90,000 in early trading. The rally proved short-lived, however, with bitcoin sliding back into the upper $87,000 range after markets opened and dipped. Prices then roared higher once again, rebounding toward $90,000 after Trump announced a delay to planned trade tariffs.
Bitcoin price was last trading around $90,000 at the time of writing, having briefly reclaimed the level for the second time in the same session.
Trump comments spark bitcoin price rally
The latest move followed comments from Trump at the World Economic Forum in Davos, Switzerland, and a subsequent post on his Truth Social platform.Β
Trump said he would delay tariffs that were scheduled to take effect on February 1 after what he described as a βvery productive meetingβ with NATO Secretary General Mark Rutte.
In the post, Trump outlined a preliminary framework for a broader agreement involving Greenland and the Arctic region, calling the potential deal βa great one for the United States of America, and all NATO nations.β He added that, based on the discussions, the planned tariffs would not move forward.
Markets responded positively to the news. U.S. equities bounced sharply, with the S&P 500, Nasdaq and Dow Jones Industrial Average all rising roughly 1.5% on the day.Β
Risk assets across the board followed suit, lifting the bitcoin price and other major cryptocurrencies back toward recent highs.
During his Davos remarks, Trump also reiterated his support for digital assets, saying he hopes to sign comprehensive crypto market structure legislation βvery soon.β
βNow, Congress is working very hard on crypto market structure legislation β Bitcoin, all of them β which I hope to sign very soon, unlocking new pathways for Americans to reach financial freedom,β Trump said.
Bitcoin price analysis as macro risks linger
Despite the relief rally, macroeconomic concerns remain in the background. Analysts have pointed to renewed stress in Japanβs bond market as a potential headwind for global risk assets.
Japanβs 10-year government bond yield has climbed to around 2.29%, a level not seen since 1999. QCP Capital highlighted in a note that Japanβs government debt exceeds 240% of GDP, with debt servicing costs projected to consume roughly a quarter of fiscal spending by 2026.
According to Bitcoin Magazine analysis, the bitcoin price held its bullish structure above $90,000 last week, rallying to $98,000 and closing around $93,600, keeping a mildly bullish bias.
Bulls will want the bitcoin price to reclaim $94,000 and retest $98,000 this week, with a sustained break potentially reaching $103,500 and the $106,000β$109,000 resistance zone.
Key support is at $91,400, with a loss possibly leading to a deeper pullback toward $87,000 or $84,000.Β
While momentum has improved, the $103,500β$109,000 area is expected to be strong resistance, where rejection could decide whether the rally continues or drops toward sub-$80,000 levels.
Wednesdayβs dramatic price action proved costly for leveraged crypto traders. According to CoinGlass data, more than $1 billion in crypto positions were liquidated over the past 24 hours as prices whipsawed higher and lower and then higher.
Long positions bore the brunt of the damage, accounting for approximately $672 million in liquidations, while short positions made up about $335 million.Β
Bitcoin led the losses with roughly $426 million in liquidations, followed by Ethereum at around $366 million.
Currently, the bitcoin price is trading at $90,019 with a 24-hour volume of $67β―B, holding steady over the past day. Its market cap stands at $1.798β―T, just below its 7-day high of $90,296 and above the 7-day low of $87,304.
Markets convulsed after President Donald Trump threatened steep tariffs on eight European nations unless Denmark cedes Greenland, with rhetoric including hints the U.S. might seize the territory by force, triggering a global risk-off move on January 20.
The crypto market shed nearly $150 billion in market capitalization as leveraged positions unwound violently, exposing Bitcoinβs continued treatment as a speculative asset rather than the safe haven its proponents claim it to be.
Tariff Shock Drives Historic Divergence
Trumpβs Saturday announcement targeted Germany, France, the UK, the Netherlands, Finland, Sweden, Norway, and Denmark with 10% tariffs starting February 1, escalating to 25% by June 1, unless a Greenland deal is reached.
ING economists warned that βadditional tariffs of 25% would probably shave 0.2 percentage points off European GDP growth,β compounding recession fears already gripping the continent.
The tariff threat effectively reopened the trade war between the EU and the U.S., despite a temporary truce reached in late July, raising the stakes and bringing a far tougher approach.
European officials brought forward the option of activating the so-called anti-coercion instrument, the EUβs trade βbazookaβ, allowing the bloc to impose tariffs and investment limits on offending nations.
French President Emmanuel Macron announced he would request the instrumentβs activation, while Manfred Weber from the European Parliamentβs largest party indicated the July deal was now βon ice.β
EU capitals is considering hitting U.S. with β¬93 billion worth of tariffs or restricting American companies from blocβs market in response to President Donald Trumpβs threats, per FT. pic.twitter.com/VuAefTw5yt
European countries hold approximately $8 trillion in U.S. bonds and stocks, making Europe by far the largest U.S. lender and exposing the deep interdependence that could turn this standoff into a full-blown crisis.
Germanyβs export-reliant economy faces particularly acute pressure, with ING economist Carsten Brzeski warning the new tariffs would be βabsolute poisonβ for the fragile recovery underway.
German exports to the United States fell 9.4% from January to November compared with a year earlier, and the trade surplus dropped to its lowest level since 2021.
Meanwhile, goldβs parabolic rally pushed prices past $4,800 per ounce to all-time highs.
TD Securitiesβ Daniel Ghali told Bloomberg that βgoldβs rally is about trust. For now, trust has bent, but hasnβt broken. If it breaks, momentum will persist for longer.β
Crypto Markets Suffer Violent Unwind
Bitcoinβs collapse alongside traditional risk assets exposed the cryptoβs failure to serve as a geopolitical hedge, despite years of positioning as βdigital gold.β
CoinGlass liquidation data revealed $998.33 million in long positions wiped out over 24 hours, with Bitcoin accounting for $440.19 million as cascading margin calls accelerated during thin Asian trading hours.
Galaxy Digitalβs Alex Thorn noted that βBitcoin isnβt quite doing the thing that itβs built to do, at least in real time,β while Bitunix analyst Dean Chen observed that βamong crypto-native investors, it is increasingly framed as a geopolitical hedge and a non-sovereign store of value.β
βHowever, for the broader market, Bitcoin is still largely traded as a high-beta risk asset,β he concluded.
Derivatives markets paint an increasingly bearish picture for the months ahead.
Sean Dawson of Derive.xyz warned that βrising geopolitical tensions between the US and Europeβparticularly around Greenlandβraise the risk of a regime shift back into a higher-volatility environment, a dynamic not currently reflected in spot prices.β
Options data shows strong put open interest concentrated across the $75K-$85K strikes for the June 26 expiry, with Dawson noting that βfrom an options perspective, the outlook remains mildly bearish through mid-year. Traders are paying a premium for downside protection.β
Bloomberg Intelligence strategist Mike McGlone delivered an even more dire assessment, warning that Bitcoinβs inability to hold long-term averages in 2025 suggests the price could eventually drop as low as $10,000.
Duke Universityβs Campbell Harvey also claimed in academic research that Bitcoin βis hardly a safe-haven asset,β noting its correlation with gold has broken down completely.
Institutional Demand Offers Potential Floor
Despite the bearish technical picture, not all analysts have turned pessimistic.
MEXC data showed that on January 16 alone, Bitcoin ETFs added 1,474 BTC, accounting for $1.48 billion in weekly inflows, while 36,800 BTC left exchanges.
These are signs of strong institutional demand and tightening supply that could limit downside.
In fact, as Cryptonews noted recently, the chance of Trump turning back on the tariff decision is high, with 86%, and that would greatly benefit Bitcoin after February 1.
Historical tariff patterns show 86% chance that Trump reverses Europe tariffs before February 1, as Bitcoin's 24/7 markets prepare to signal policy shifts first.#Trump#Tariffs#Europe#Bitcoinhttps://t.co/eGxEedfe06
Speaking with Cryptonews, Bitfinex analysts also noted that βBitcoin spot volumes remain normal, funding rates are close to neutral, and there has been no spike in exchange inflows that would signal reactive selling,β suggesting the selloff reflects macro-linked noise rather than a crypto-specific catalyst.
For now, whether Bitcoinβs current consolidation represents capitulation or merely the calm before a deeper storm remains the central question facing crypto markets as February approaches.
Fundstratβs head of research, Tom Lee, has told investors to prepare for a rough opening to 2026 before conditions improve later in the year. He warned that political friction and tariff talk could trigger meaningful setbacks for both stocks and Bitcoin, even as blockchain and AI remain long-term strengths.
Tom Leeβs Call And The Near-Term Picture
Lee said a more dovish stance from the US Federal Reserve and the end of quantitative tightening set the stage for gains later on.
He put a possible market correction in the mid-teens range, estimating a pullback of about 15% to 20% at one stage.
He pointed to geopolitics β including renewed tariff threats β and rising political divides as brakes on an immediate, broad rally. Reports note he still expects a late-year rebound if policy eases and liquidity returns.
Reports say the White Houseβs selective support for certain industries could tilt which sectors lead the recovery.
2026 is shaping up to be similar to 2025:
β good fundamentals
β tariff escalations and White House picking βwinners and losersβ
β political divisiveness
β tailwinds from AI and blockchain
BUT: dovish Fed now and QT over
β Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) January 20, 2026
Deleveraging Still Hitting Crypto Liquidity
Lee argued that recent squeezes have left crypto markets fragile. Market makers have been weakened by repeated forced exits, and that has made price moves jumpier.
He also noted that a fresh Bitcoin all-time high would be an important signal that the market has worked through those stresses, though he didnβt repeat earlier extreme price targets in his latest remarks.
Reports stress the difference between a technical bounce and a move backed by wider adoption and deeper institutional flows.
Heavy Bitcoin Selloff
Despite warnings that a painful decline may still unfold, some investors are not backing away entirely. Reports say parts of the market continue to view sharp pullbacks as buying chances rather than exit signals.
Even with uncertainty around tariffs and global politics, Lee and his camp believes disciplined dip buying β spread out over time β offers better odds than trying to time a perfect bottom while fear dominates headlines.
βAnd so a painful decline may lie ahead but we would βbuy the dip'β, Lee said in an X post.
Reports indicate that more than $1.8 billion was liquidated over a 48-hour stretch as bitcoin lost ground.
Bitcoin sank to roughly $88,500 during the slide, and Coinglass data showed the bulk of wiped positions were longs β a sign that traders had been positioned for higher prices.
The selloff erased gains made earlier in the year and pulled crypto capitalization sharply lower, in one of the biggest drops since mid-November.
Featured image from Allrecipes, chart from TradingView
Bitcoin tumbled sharply this week and erased the gains it had made in 2026. Reports from CoinGlass show that over the past 24 hours, 167,513 traders were forced out of their positions, with total liquidations reaching $857 million, with most of those losses coming from long bets. The price slid below the key $88,000 area on major exchanges as traders were forced out of leveraged positions.
Liquidations And Quick Drop
According to CoinGlass and market trackers, the liquidations were concentrated in long positions, which amplified the fall and made the move faster than a simple sell-off would have been. Crypto market value fell by hundreds of millions over the same short span.
Markets Turned Risk-Averse As Tariff Threats Spread
Reports note that renewed tariff threats from US President Donald Trump toward some European countries set off a fresh βSell Americaβ trade, which pushed investors away from US assets and toward safer bets.
Stocks fell and the dollar weakened. At the same time, traders were watching big moves in Japanβs bond market, where yields jumped sharply, increasing pressure on global liquidity. Those bond moves are important because they can force carry trades to unwind, pulling money out of risk assets β including crypto.
A Tug Between Liquidity And Safe Havens
The sell-off did not happen for only one reason. Reports point to a mix of political shocks, bond-market stress, and a wave of forced liquidations as the main drivers. As cash flowed into safe havens, gold surged to fresh highs while crypto lost ground. Many investors treated Bitcoin like a risky asset in this episode, selling it to cover losses or margin calls elsewhere.
Different trackers gave slightly different figures on total market losses and exact liquidations over 24 and 48 hours. That is normal when markets move fast and data is pulled from different exchanges and windows. Still, the broad picture was clear: a fast, leveraged unwind sent prices lower and erased the yearβs gains for Bitcoin.
Markets Will Watch Liquidity And Diplomacy
Looking ahead, investors will likely watch three things closely: moves in global bond markets, any escalation or de-escalation around the tariff threats tied to Greenland, and whether forced selling slows. If liquidity conditions calm, risk assets can recover more easily. If they keep tightening, the pressure on crypto and stocks could persist.
Featured image from Pexels, chart from TradingView
The crypto market shed $150 billion in capitalization as Bitcoin plunged below $88,000 amid a brutal leverage unwind, while gold surged past $4,800 per ounce for the first time in history.
The sharp divergence came as President Donald Trumpβs escalating tariff threats against European allies over Greenland triggered a broad flight from US risk assets, with geopolitical tensions reaching their highest point since the Liberation Day tariff announcements of April 2025.
Bitcoin tumbled 9% in 48 hours to $87,000, wiping out $360 million in leveraged long positions in a single hour late Monday.
Source: TradingView
The selloff intensified pressure on an already fragile market structure, with short-term holders (those who purchased Bitcoin within the past 155 days) now underwater for eight consecutive weeks, requiring a recovery above $98,000 to return to profitability, according to Glassnode data.
Market Sentiment Hits Multi-Year Lows
CoinGlass liquidation data revealed 181,570 traders were wiped out over 24 hours, with $998.33 million in long positions liquidated versus just $71.39 million in shorts.
Bitcoin accounted for $440.19 million in forced selling, while Ethereum accounted for $392.38 million in liquidations, as the cascade accelerated during thin Asian trading hours.
Rex from R89Capital captured the despair gripping crypto natives, stating, βsentiment has bottomed out for sure. No one gives a single fuck about crypto. Die hard crypto natives whoβve shown up daily for years are trading stock shitters and commodities.β
He added that βit literally canβt get any worse for sentiment than right now,β noting that even during the COVID crash bottom, people still believed in the industry.
Sentiment has bottomed out for sure. No one gives a single fuck about crypto. Die hard crypto natives who've shown up daily for years are trading stock shitters and commodities. No one wants to make angel investments in this space, no one believes any of the bullshit narratives..β¦
Another analyst, TheGreekGod11, echoed this frustration, observing that the industry executed βan excellent job at making crypto look like absolute dogshitβ by voting in the first pro-crypto president, only to crash the market.
Mike Novogratz also warned that βthe gold price is telling us we are losing reserve currency status at an accelerating rate,β adding that β$BTC is disappointing as it is still being met with selling.β
He reiterated that Bitcoin βhas to take out 100-103k to regain its upward trend,β though he believes it will happen in time.
Joe Consorti offered a contrarian take, stating, βBitcoin plummeting on geopolitical escalation, rather than ripping with gold and silver, tells you how early we are. The largest informational asymmetry in markets is still alive and well.β
Bitcoin plummeting on geopolitical escalation, rather than ripping with gold and silver, tells you how early we are.
The largest informational asymmetry in markets is still alive and well.
Gold extended its historic rally to $4,874.21, marking a 2.3% gain and continuing a three-session surge that has now pushed the precious metal within reach of $4,900.
According to Economies, Tony Sycamore, market analyst at IG in Sydney, stated that investorsβ shedding of dollar-denominated assets reflects βa loss of confidence in the US administration and rising strains in international alliances following Trumpβs latest threats.β
Daniel Ghali, senior commodity strategist at TD Securities, also told Bloomberg that the surge is spurring βfear of market-led debasement in the rest of the world,β adding that βgoldβs rally is about trust. For now, trust has bent, but hasnβt broken. If it breaks, momentum will persist for longer.β
Goldman Sachs co-head of commodities research Daan Struyven also declared, βGold remains our highest conviction,β reiterating the bankβs base case scenario of gold rising to $4,900 per ounce, with risks to the upside.
In fact, Benjamin Cowen stated bluntly that βmetals outperformed crypto in 2025 and will likely do so again in 2026,β warning that when metals eventually correct, βcrypto will likely drop more.β
Metals outperformed crypto in 2025 and will likely do so again in 2026.
Metals will likely have a big correction later this year, but when they do, crypto will likely drop more.
Trade the market you have, not the market you want.
Traditional equity markets suffered parallel damage, with the S&P 500 falling 2.06% and the Nasdaq Composite dropping 2.4% on Tuesday after markets reopened following Mondayβs holiday.
Strategyβs Bitcoin holdings came under scrutiny, with analyst Maartunn noting that β40% of Strategyβs Bitcoin supply is currently sitting at a loss,β adding that βpressureβs building.β
40% of Strategyβs Bitcoin supply is currently sitting at a loss
Analyst CrediBULL Crypto offered cautious optimism, pointing out that βfor the first time in 7 months, LTH (long term holders) have shifted from being net sellers to net buyers,β suggesting the reversal may be just around the corner.
However, analyst Ted Pillows warned that β$BTC must hold above the $89,000 level. Losing this zone will end the short-term uptrend.β
Trump reiterated Tuesday there would be βno retreatβ from his goal of controlling Greenland, threatening 10% tariffs on eight European nations beginning February unless they withdraw objections to US annexation.
French President Emmanuel Macron directly rebuked Trumpβs tactics at Davos, while the EU prepared emergency countermeasures, including retaliatory tariffs worth β¬93 billion on US imports.
For now, no known agreement has been reached, as fear remains heightened in the market.
Bitcoinβs collapse alongside traditional risk assets, rather than rallying with gold, exposed the assetβs continued treatment as a speculative asset rather than a proven safe haven during geopolitical crises.
According to market reports, US President Donald Trump announced a punitive tariff plan aimed at several European allies. The move sent a clear warning to traders and policy makers alike.
Stocks and crypto fell as investors shifted to assets they see as safer. Gold climbed, and some currencies strengthened as a reaction to the risk.
Markets Feel The Shift
Trading floors showed quick reactions. Bitcoin slipped by about 3% and traded in the low-$90,000 range for a time, while equity futures weakened. Safe havens were bought up. Precious metals recorded gains.
Based on reports from market outlets, liquidations hit crypto platforms hard, with roughly $750 million to $875 million of leveraged long positions closed out in the first wave of selling. That added extra downward pressure on prices and raised volatility for hours after the announcement.
Tariff Timetable And Targets
Trump said an extra 10% tariff would start on February 1st, 2026 for goods from eight countries that opposed his Greenland stance, with the level set to rise to 25% by June if talks do not move forward.
The affected nations include Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and the UK.
Governments in Europe reacted with firm language and warned of counters. Officials in Brussels hinted at possible measures that could hurt US exporters if tensions deepen. Trade policy is now back in the spotlight and crossing multiple political lines.
We donβt always agree with the US government and in this case we certainly donβt. These tariffs will hurt us.
If Greenland is vulnerable to malign influences, then have another look at Diego Garcia. https://t.co/z0r0IUlD6I
Crypto traders saw the headlines and reacted quickly. Positions that had been built with margin were trimmed or forced closed. Some funds favored reducing exposure to volatile tokens, while others bought the dip on the theory that shocks like this are temporary.
Over short stretches, Bitcoin behaved more like a risk asset, moving with stocks rather than acting as an independent store of value.
Over longer stretches, some analysts argue that policy shocks which raise inflationary expectations could boost demand for scarce assets, though that view depends on many economic moves that may follow.
What Traders Are Doing
Reports say market makers tightened spreads and liquidity pools thinned during the worst of the volatility. Large orders were matched more slowly and price swings widened.
Some institutional desks paused trading for a few moments to reassess risk models, while retail traders watched charts and reacted to alerts.
A few hedge desks took the chance to rebalance toward commodity exposure. Others focused on scenario planning, mapping out how retaliatory tariffs or sanctions might affect specific sectors.
Featured image from Unsplash, chart from TradingView
Commerce Secretary Howard Lutnick is warning memory chipmakers that skipping US investment could mean duties up to 100%. If that turns into policy, SSD and RAM prices may climb quickly.
Crypto prices crashed on Monday morning, with the total crypto market cap dropping 2.4% to $3.2 trillion as investor sentiment further deteriorated amid fresh tariff war concerns. Bitcoin (BTC), the worldβs largest crypto asset, dropped 3% to nearly $92,250 onβ¦
Crypto prices today declined sharply as investors reacted to geopolitical tensions and ongoing regulatory uncertainty. The total crypto market capitalization fell about 3% to roughly $3.2 trillion. At press time, Bitcoin was trading near $92,548, down 2.7% over the lastβ¦
The bitcoin price plunged nearly $4,000 in a sharp evening sell-off after President Donald Trump announced plans to impose sweeping new tariffs on Europe on Saturday.
Around 6 p.m. EST, massive amounts of selling hit the crypto market triggering a wave of forced liquidations across the bitcoin price and altcoins.
The worldβs largest cryptocurrency fell from around $95,500 to an intraday low of $91,935 in a span of roughly two hours, according to Bitcoin Magazine Pro data.
The sudden drop wiped out more than $500 million in leveraged long positions in just 60 minutes, with total crypto long liquidations topping $525 million during the same period, according to market data.
The bitcoin price has since stabilized near $92,600, but remains down about 2.5% over the past 24 hours.
The sell-off coincided with heightened macro uncertainty after Trump said the U.S. would introduce new tariffs on European nations beginning February 1.Β
Under the proposal, a 10% tariff would be applied to goods from eight countries β Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland β rising to 25% by June 1 if no agreement is reached.Β
Trump linked the measures to U.S. efforts to secure Greenland, escalating already tense transatlantic relations.
European leaders pushed back strongly. In a joint statement, the affected countries warned that the tariff threats risk a βdangerous downward spiral,β while Danish Prime Minister Mette Frederiksen said Europe βwill not be blackmailed.βΒ
Protests were reported in Denmark and Greenland over the weekend, adding to the political fallout.
Gold prices also climbed to a new all-time high of around $4,670 at the time of writing.
On top of this, the U.S. Supreme Court is set to rule on a closely watched case that could determine whether President Donald Trump had the authority to impose sweeping tariffs under emergency powers, a decision with major implications for trade policy and federal revenues.
At issue is Trumpβs use of the International Emergency Economic Powers Act (IEEPA) to declare trade deficits a national emergency and levy broad tariffs, including a baseline 10% duty on most imports.Β
A ruling against Trump could force the government to refund more than $100 billion in tariffs already collected, undermining funding assumptions tied to defense and budget plans, according to reports from Reuters and the Tax Foundation.
If the court upholds Trumpβs authority, existing tariffs would remain in place and future measures β such as those duties on European goods tied to Greenland β could proceed. Importers are already preparing for both outcomes, with many keeping shipments βunliquidatedβ to preserve potential refund claims.Β
The bitcoin price is down roughly 3% from its seven-day high of $95,468, and trades within a tight range above its seven-day low of $92,284. The asset has a circulating supply of 19.98 million BTC, with a maximum supply capped at 21 million.
The global Bitcoin market capitalization stands at approximately $1.85 trillion, down about 2% on the day, while 24-hour trading volume reached $32 billion.
US President Donald Trump has announced new tariffs on Nvidia and AMD as part of a novel scheme to enact a deal with the technology giants to take a 25 percent cut of sales of their AI processors to China.
In December, the White House said it would allow Nvidia to start shipping its H200 chips to China, reversing a policy that prohibited the export of advanced AI hardware. However, it demanded a 25 percent cut of the sales.
The new US tariffs on certain chips, announced on Wednesday, were designed to implement these payments and protect the unusual arrangement from legal challenges, according to several industry executives.
The bitcoin price was trading near the $90,000 mark on Friday as crypto markets steadied following a delay from the U.S. Supreme Court on a closely watched ruling tied to President Donald Trumpβs tariff policy, temporarily easing near-term macro uncertainty.
The price of bitcoin stood at $90,443 at the time of writing, down about 1% over the past 24 hours, according to market data. Daily trading volume totaled roughly $45 billion, while bitcoinβs total market capitalization slipped to approximately $1.80 trillion, also down 1% on the day.
Despite the modest pullback, the bitcoin price remains tightly rangebound near recent highs. The asset is currently about 2% below its seven-day high of $91,839 and roughly 1% above its seven-day low of $89,671, per Bitcoin Magazine Pro data.Β
Bitcoinβs circulating supply now stands at 19,973,659 BTC, inching closer to its fixed cap of 21 million coins β a structural feature that continues to underpin long-term bullish narratives.Β
Tariff uncertainty weighs, then lifts the bitcoin price
Crypto prices initially wavered this week as traders positioned ahead of a potential Supreme Court decision on the legality of Trump-era global tariffs, widely viewed as a major macro catalyst.Β
However, markets moved higher on Friday after the court delayed its ruling until next week, reducing immediate downside risk across equities, bonds, and digital assets.
The bitcoin price hovered around $90,000 near the U.S. equity market open as investors reassessed risk exposure.Β
Analysts said the delay eased concerns about abrupt fiscal disruptions, including the possibility that the U.S. Treasury could be forced to refund more than $130 billion to importers if the tariffs were struck down.
Bitcoin has increasingly traded as a macro-sensitive asset, reacting to shifts in policy expectations, liquidity conditions, and geopolitical uncertainty.Β
As a result, major legal or political developments continue to influence short-term price action, even as long-term adoption trends remain intact.
Bitcoin price in consolidation following early-year rally
The current price reflects a cooling period after the bitcoin price surged in the opening days of the year, briefly pushing toward new short-term highs.Β
That early-January rally reignited bullish sentiment but also triggered profit-taking as momentum faded near resistance.
Technically, traders are watching the $90,000β$91,000 zone as a key support area. A sustained break lower could expose downside toward the high-$80,000 range, while a move back above $92,000 would likely reopen the path toward higher resistance levels.
For now, bitcoin remains locked in consolidation, with volatility compressed and traders awaiting a clearer catalyst.
Will the United States buy Bitcoin?
Cathie Wood of ARK Invest said in a podcast recently that politics could drive the U.S. to actively buy bitcoin in 2026. Wood argues that crypto has become a durable political issue for President Trump, potentially shaping policy ahead of the midterm elections.
While the U.S. currently holds a bitcoin reserve made up of seized assets, Trump has pledged not to sell any of the bitcoin, and the original goal was to acquire one million BTC.
Wood suggested in her conversation that the administration may move from holding only confiscated bitcoin to purchasing BTC outright for a national strategic reserve.
Crypto has also emerged as a more organized political constituency, supporting Trump and engaging with the White House through events and donations. On the policy side, executive orders have established the reserve and stockpile, with recommendations for Treasury-led expansion.
Wood sees government purchases as a potential market inflection point, reinforcing bitcoinβs scarcity as nearly 20 million of its 21 million cap have already been mined. If the United States would start buying bitcoin, its safe to assume that the bitcoin price would react positively.
At the time of writing, the bitcoin price is $90,814.Β
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