Decline in the price of BTC
As of January 2026, the Bitcoin market has faced a sharp and sudden downturn after a promising start to the new year.
Initially, the price surged from \$85,000 to a local peak of nearly \$98,000 by mid-January, driven by strong ETF inflows.
However, this momentum was abruptly halted by a geopolitical crisis involving the United States and the European Union.
President Donald Trump’s renewed pursuit of Greenland sparked intense diplomatic friction and trade war fears.
The announcement of a 10% tariff on eight key European allies led to a global "risk-off" sentiment in financial markets.
In response, the EU threatened a massive €93 billion retaliatory package, further spooking international investors.
Bitcoin, often treated as a high-beta risk asset, saw a massive liquidation of over \$800 million in leveraged long positions.
The price rapidly retreated from its \$98,000 high, slicing through major support levels as the "Sell America" trade intensified.
By January 20th, the cryptocurrency had dropped to approximately \$90,500, representing a decline of nearly 8\% in less than a week.
Capital shifted into traditional safe havens, sending gold to record highs of \$4,680 per ounce while digital assets bled.
Technical indicators like the 50-day EMA were breached, signaling a potential shift in the medium-term market structure.
Analysts now point to the \$88,000 zone as the next critical support level that must hold to prevent a deeper correction.
The volatility has been exacerbated by delays in a major U.S. crypto regulatory bill currently stalled in Congress.
Despite the carnage, long-term institutional holders have largely remained steadfast, viewing the dip as a temporary macro-shock.
The industry now watches the Davos 2026 summit for any signs of a diplomatic resolution that could restore market stability$BTC
