New York, Jan 20, 2026, 13:40 EST — Regular session
- Bitcoin dropped 3.8%, slipping below the $90,000 mark to roughly $89,480.
- Traders flagged a broad “risk-off” shift sparked by fresh tariff threats between the U.S. and Europe.
- The strategy revealed $2.13 billion worth of bitcoin buys across eight days ending Jan. 19.
Bitcoin slipped under $90,000 on Tuesday, deepening a retreat amid a broader risk-asset selloff. BTC dipped roughly 3.8% to $89,480, having reached $93,247 earlier in the day.
The shift carried weight beyond just crypto. Investors were reacting to new trade and geopolitical news, trimming their U.S. asset holdings and seeking refuge in safer market areas. 1
U.S. President Donald Trump threatened to restart a trade war with Europe amid his efforts to acquire Greenland, sparking what some investors called a “Sell America” move — offloading U.S. stocks, bonds, and the dollar all at once. 1
“The geopolitical risks that we’ve been discussing for quite some time are coming back into focus and altering market sentiment,” said Wasif Latif, chief investment officer at Sarmaya Partners. 1
Crypto matched the mood. Ether took a bigger hit than bitcoin, sliding roughly 6.9% to $2,990.
Strategy, the bitcoin-focused company formerly called MicroStrategy, reported buying roughly $2.13 billion in bitcoin over the past eight days. That boost brings its total holdings to 709,715 bitcoins as of Jan. 19, according to a regulatory filing and a post by Chairman Michael Saylor. 2
Crypto-linked stocks dropped alongside the coin. Strategy shares tumbled roughly 7.4%, while Coinbase slid around 5.3% in U.S. trading.
The dollar weakened amid investor concerns over U.S. market exposure. Tony Sycamore, a market analyst at IG, pointed to “fears of prolonged uncertainty” and possible retaliation as key factors. 3
Bulls face a clear threat: bitcoin often amplifies moves in risk appetite, and sudden intraday jolts can intensify if leverage unwinds fast. Crypto news site Decrypt reported about $865 million in liquidations—forced shutdowns of leveraged positions—as prices dropped. 4
That said, the tape could turn quickly if political tensions ease or risk markets find their footing. Reuters pointed out that investors have witnessed similar threats being dialed back in the past, despite Tuesday’s headlines triggering a sharp rethink. 1
Traders are turning their attention to an emergency EU summit in Brussels on Thursday to discuss possible trade measures, along with the Federal Reserve’s policy meeting scheduled for Jan. 27-28. They’re also digesting Treasury Secretary Scott Bessent’s remark that President Trump might pick the next Fed chair “as soon as next week.” 1
