NEW YORK, Jan 20, 2026, 06:03 EST
Bitcoin tumbled up to 3.6% during Asian trading on Monday, dipping below $92,000 and dragging the broader crypto market down. Ether lost 4.9%, while Solana plunged 8.6%, according to Bloomberg. 1
The selloff came after U.S. President Donald Trump threatened tariffs on eight European countries if the U.S. isn’t allowed to buy Greenland. The move sent investors fleeing to safer assets, pushing riskier bets aside. Berenberg’s chief economist Holger Schmieding said hopes that tariff tensions had eased “have been dashed for now,” as bitcoin dropped nearly 3% to $92,602.64. 2
European leaders were swift to denounce the tariff threat and considered retaliation options, including the bloc’s Anti-Coercion Instrument — often called a “trade bazooka” for its potential impact. “Our priority is to engage, not escalate,” said European Commission spokesperson Olof Gill, pointing out that EU-U.S. trade amounts to roughly 1.7 trillion euros ($2 trillion) annually. 3
The crypto selloff wiped out roughly $100 billion in market value, according to CoinGecko, with CoinGlass reporting about $790 million in bullish leveraged bets liquidated within 24 hours — forced shutdowns that tend to accelerate declines. Richard Galvin, DACM hedge fund co-founder, described it as “more a risk-off move than anything crypto-specific.” BTC Markets analyst Rachael Lucas warned that if current support breaks, $90,000 could be “the next stop.” 4
The decline came following a robust start to the year, driven by inflows into U.S.-listed exchange-traded funds, or ETFs, which trade like shares on stock markets. Bitcoin climbed close to $98,000 on Jan. 14 but the tariff news swiftly ended the upward momentum. 5
DL News noted the latest drop once again tied crypto to broader markets, not as a safe haven. It referenced a European Council warning that tariffs might spark a “dangerous downward spiral,” while gold hovered near $4,664 an ounce. 6
By early Tuesday, bitcoin slipped briefly below $91,000, hovering near $90,878, according to DL News. Sean Dawson, research head at Derive.xyz, pointed to mounting “macro risks,” while Bloomberg Intelligence strategist Mike McGlone warned bitcoin might plunge “as low as $10,000.” 7
Currency markets saw traders rush to buy protection against potential swings in early February following Trump’s tariff warning, hinting that deadlines are now taking center stage over headlines. Reuters data revealed two-week implied euro volatility creeping up toward 6%, marking its highest point since early December. 8
On Tuesday, jitters rippled through multiple asset classes: U.S. stock futures dropped, the dollar slipped further, and gold climbed past $4,700 an ounce, Reuters noted in its global markets roundup. Meanwhile, the 10-year U.S. Treasury yield edged up to 4.265%. 9
Barron’s reported bitcoin dipped briefly below $93,000 amid the tariff shock, warning the wider crypto market could face a sharper selloff if losses continue to mount. 10
The key question remains whether the tariff threat will become actual policy or get stalled, diluted, or challenged in courts and politics. Reuters noted investors are also watching for a U.S. Supreme Court decision on the tariffs’ legality. With Feb. 1 fast approaching as a critical deadline, any prolonged dispute could extend risk-off trading and keep pressure on leveraged crypto positions. 11
