Crypto Markets Slide as Bitcoin Slips Below $90,000 and Ether Falls 7%
January 20, 2026 – Global crypto valuations retreated sharply on Tuesday, driven by heightened trade‑war anxieties after President Donald Trump’s recent threats to impose tariffs on European nations linked to his push for U.S. control of Greenland.
Market snapshot
- Bitcoin (BTC): $89,402, down 3.8% in the last 24 hours.
- Ethereum (ETH): $2,991, down roughly 7%.
- Total crypto market cap: about $3.10 trillion, a 4% contraction over the same period.
- 24‑hour trading volume: approximately $148.2 billion, indicating elevated activity despite the sell‑off.
Other large‑cap assets also felt the pressure: Binance Coin (BNB) fell 3.4% to $893, XRP slid 5.5% to $1.89, and Solana dropped 5.2% to $127, extending its weekly decline to nearly 12%.
Leveraged liquidations
CoinGlass reported that leveraged positions worth $713 million were liquidated on Tuesday. The breakdown is as follows:
| Type | Value liquidated |
|---|---|
| Long positions | $653 million |
| Short positions | $60.5 million |
Ethereum accounted for the largest share of the liquidations at $269.4 million, followed by Bitcoin at $243 million. In total, 165,751 traders were forced out of their positions, underscoring the volatility that high‑leverage strategies face during rapid market moves.
ETF flows
The exchange‑traded‑fund (ETF) arena posted mixed signals:
| ETF | Net flow (USD) |
|---|---|
| U.S. Bitcoin spot ETFs | ‑$394.7 million (outflow) |
| U.S. Ether spot ETFs | +$4.6 million (inflow) |
| U.S. XRP spot ETFs | +$1.1 million (inflow) |
| U.S. Solana spot ETFs | ‑$2.2 million (outflow) |
The outflow from Bitcoin‑focused ETFs mirrors the broader market sell‑off, while modest inflows into Ether and XRP ETFs suggest a degree of tactical repositioning among investors.
Token‑specific movements
- Gainers: Smaller projects managed modest rebounds. Canton (CC) rallied 9%, Provenance Blockchain (HASH) rose 5%, and MemeCore (M) added another 5%.
- Laggers: Monero (XMR) plunged 17.5% to $507, Hyperliquid (HYPE) fell 10.4% to $21.36, and Quant (QNT) slid 7.4% to $77.73.
These divergent performances highlight the ongoing risk‑reward calculus that alt‑coin investors face when core assets swing sharply.
Geopolitical backdrop
The crypto downturn coincided with a broader market sell‑off triggered by President Trump’s public threat to levy tariffs on several European countries and the United Kingdom unless they support his Greenland ambitions. The announcement sparked a wave of trade‑war rhetoric that sent U.S. equities tumbling – the S&P 500 recorded its worst day since October, and the Nasdaq slipped more than 2%. European markets also posted consecutive losses.
Investors turned to traditional safe‑haven assets: gold surged to a fresh record near $4,763 per ounce (+1.8%), while silver hovered around $94.57.
Analysis
- Leverage amplified the move – The $713 million in liquidations, largely long positions, indicates that many traders were caught off‑guard by the rapid price decline. High‑leverage exposure can exacerbate price swings, especially when macro‑news erupts.
- Bitcoin’s breach of the $90k psychological barrier – While a $90k level has become a reference point, the breach may trigger algorithmic stop‑loss orders and further stress on derivative markets, feeding a feedback loop of selling.
- Ethereum’s outsized fall – A 7% dip suggests that the second‑largest crypto is more sensitive to breadth risk than Bitcoin. The larger share of ETH liquidations hints that leveraged traders were disproportionately betting on Ethereum’s upside.
- ETF outflows signal risk aversion – The sizable withdrawal from Bitcoin spot ETFs aligns with a broader flight to cash and safe assets. Conversely, small inflows into Ether and XRP ETFs could reflect a strategic shift toward assets perceived as having better short‑term upside or lower correlation with Bitcoin’s movement.
- Geopolitical risk now a market driver – As political statements from world leaders increasingly sway market sentiment, crypto participants must monitor not only on‑chain data but also geopolitical developments that can quickly alter risk perception.
Key takeaways
- Bitcoin has slipped below $90,000, trading near $89,400, while Ether is down about 7% at $2,990.
- Over $700 million in leveraged positions were liquidated, with long positions bearing the brunt of the loss.
- ETF activity shows a net outflow from Bitcoin funds but modest inflows into Ether and XRP products, indicating selective repositioning.
- Trade‑war rhetoric tied to the Greenland tariff threat contributed to a broader risk‑off environment, pulling down equities, crypto and prompting a shift into gold.
- Alt‑coin performance diverged sharply; a handful of smaller tokens managed modest gains, whereas privacy‑focused and niche projects suffered significant declines.
Investors and traders should remain cautious about leverage exposure and keep a close eye on geopolitical headlines, which appear to be the primary catalyst behind today’s crypto market dip.
Source: https://thedefiant.io/news/markets/crypto-markets-slide-as-btc-falls-below-usd90k-eth-drops-7
