Bitcoin slipped to about $92,242 as Trump’s new tariff threats sparked risk-off trading.
Ethereum fell over 3% after $864 million in leveraged crypto positions were liquidated.
Crypto markets remained volatile as Trump’s tariff plans and policy uncertainty weighed sentiment.
Crypto prices today are showing mixed signals as major digital assets struggle with fresh trade tensions and regulatory uncertainty. Bitcoin price dropped below $93,000 while Ethereum fell by over 3% at press time. Major cryptocurrencies followed suit, going on a downtrend except Dogecoin and Cardano.
The market continues to feel the effects of US President Donald Trump’s announcement of fresh tariffs. These are levied on eight European countries, igniting trade war tensions. Let’s find out what happened in the crypto market today in depth based on CoinMarketCap data.
Bitcoin price traded at $92,242, down 0.41% over the past 24 hours. The leading cryptocurrency earlier traded near $92,000 after briefly pushing through resistance levels around $94,000 to $95,000 last week.
CoinSwitch Markets Desk commented, “BTC has been consolidating around the $93,000 level following recent US-EU trade war escalation, suggesting near-term selling pressure has eased. The broader risk-off mood supported safe-haven assets, with gold and silver rising toward $4,700 and $95, while BTC moved sideways. Zooming out, bitcoin has remained within a broad $80,000–$98,000 range for nearly 59 days, consistent with previous post-2022 consolidation phases that typically lasted 52-62 days before a breakout.”
CoinSwitch analysts further noted, “The New York Stock Exchange plans to launch a 24/7 blockchain-based platform for tokenized stocks and ETFs, pending approval. For now, as long as $92,000 holds, downside appears limited, though upside remains capped below $94,500. Near-term direction will depend on trade tensions and broader geopolitical risks.”
Ethereum price fell 0.83% to $3,183. Earlier in the day, ETH fell as much as 3.7% before recovering. Solana declined 0.14% to $133.48. TRON (TRX) dipped 2.79% to trade at $0.3109. XRP price slipped 0.13% to $1.96, continuing its price trajectory below $2 over the last 24 hours. BNB was at $926.79, down 0.20%.
On the other hand, some coins defied the bearish trend. Dogecoin price climbed 0.52% to $0.1278. Cardano (ADA) rose 0.58% to $0.3664. Tether (USDT) and USDC held near their $1 peg, as expected for stablecoins designed to maintain steady values. While geopolitical tensions and regulatory delays weigh on sentiment, some investors are viewing recent price dips as buying opportunities.
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Here are the top headlines impacting crypto prices today:
New Trump tariffs of 10% on imports of goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain, starting February 1, sent shockwaves through global markets. These tariffs would increase to 25% by June 1 if no deal is reached.
The tariff threats center on disputes over Greenland, with Trump linking trade policy to geopolitical demands. European officials quickly pushed back, with the EU weighing retaliation measures worth approximately €93 billion.
This risk-off mood spread across asset classes. By early Asian hours, Nasdaq and S&P 500 futures were down about 1%. Asian equities dipped, with MSCI's broad Asia-Pacific gauge falling 0.44% and Japan's Nikkei dropping 0.8%. The dollar stayed under pressure while US Treasury yields climbed, with the 10-year yield rising to around 4.265%, its highest level in over four months.
The market's Crypto Fear & Greed index has dropped into ‘Fear’ territory, reflecting the cautious mood among traders. Matt Howells-Barby, VP at Kraken, noted that crypto has shown ‘asymmetric downside risk’ since October. He further added that markets are now ‘much more likely to punish any negative news more severely than reward positive catalysts.’
However, he suggested the relatively modest 3.5% pullback could indicate traders are preparing for Trump to potentially dial down the tariff threats, a pattern some call ‘TACO’ (Trump always chickens out), similar to last year's threats against China that never fully materialized.
The drop came during a low-liquidity trading session with US markets closed for a holiday. Bitcoin had shown signs of recovery in recent days, with what some analysts called a ‘leverage reset’ that flushed out short positions in the biggest clear-out seen in nearly 100 days.
Over $864 million in crypto positions got liquidated in the past 24 hours, with most of those losses hitting traders betting on price increases. Long positions on Bitcoin and Ethereum bore the brunt of the forced closures as prices slipped.
All eyes now turn to the World Economic Forum in Davos, Switzerland, where Trump is scheduled to meet global business leaders on January 21. Any remarks hinting at escalation or de-escalation of the tariff dispute could create significant volatility in crypto prices today and through the rest of the week. Analysts expect heightened sensitivity to news flow as political and business leaders gather, with crypto markets likely to react quickly to any policy signals or geopolitical developments.
Also Read: Are Crypto Investors Abandoning Altcoins for TradFi in 2026?
Crypto prices today reflect a market navigating multiple challenges, from trade tensions to macroeconomic uncertainties. However, technical improvements and reduced selling pressure from long-term holders suggest potential for recovery once these headwinds clear. Traders should watch Davos developments and regulatory progress closely as key factors shaping near-term price action.
1. Why is the Bitcoin price down today?
New US tariffs on eight European countries have added to increased global trade tensions, creating the selloff of many risky assets. The low liquidity caused by the holiday season, combined with forced liquidation of large amounts of positions from many traders, was another reason for the strong downward pressure on the price of Bitcoin.
2. Why are Ethereum and Solana falling today?
Ethereum and Solana have experienced price declines as a result of the liquidation of over $864 million worth of different positions held by many traders betting that either Bitcoin or Ethereum will appreciate. Ethereum reached a low point near a 3% decline, while Solana's low was around 5% before recovering to a degree after forced liquidations eased.
3. Why is the crypto market down today?
The crypto market is down due to tariff threats from the US, delayed crypto regulation in US Congress, and rising Treasury yields. These factors reduced investor risk appetite, causing selling across Bitcoin, Ethereum, and other major cryptocurrencies.
4. Why are XRP, Dogecoin, and Cardano up today?
XRP, Dogecoin, and Cardano experienced price increases as investors took advantage of the market's recent dip, purchasing those altcoins instead of selling at depressed prices. These three altcoins showed a higher level of price strength than either Bitcoin and Ethereum.
5. Is this crypto dip a warning sign or a buying opportunity?
Yes, the current dip presents a short-term risk, but it is not indicative of long-term risks. The timing of your purchase will depend on your risk appetite. This dip shows short-term risk but not panic selling. Long-term Bitcoin holder selling has dropped to about 12,800 BTC per week, down from over 100,000 BTC earlier, suggesting stronger conviction and potential for recovery if macro pressure eases.
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