Why Is Bitcoin And Crypto Down Today? Key Drivers Behind The Move
Analysis
Price Impact
HighBitcoin and other major cryptocurrencies experienced significant drops (btc 3.8%, eth 5.3%, xrp 10.4%, sol 9%) due to an abrupt risk-off sentiment triggered by new us tariff threats. this led to massive long liquidations totaling over $787 million.
Trustworthiness
HighThe source explicitly states a strict editorial policy focused on accuracy, relevance, and impartiality, with content created by industry experts and meticulously reviewed, adhering to the highest reporting standards.
Price Direction
BearishA 'geopolitics-to-trade' headline regarding us tariff threats over greenland sparked a global growth and policy risk repricing. crypto markets, especially with their 24/7 nature and deep derivatives, transmitted this shock, leading to strong selling pressure from us whales and subsequent forced liquidation of leveraged long positions.
Time Effect
ShortThe initial impact was immediate and sharp, occurring over a weekend liquidity window. while geopolitical tensions can have long-term implications, the described price drop was a swift market reaction to the sudden news, with some recovery noted 'at press time', indicating short-term volatility.
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Article Content:
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Bitcoin slid to $91,920 late Sunday in New York, down 3.8% from roughly $95,500, as a sharp risk-off impulse hit crypto markets and quickly bled into high beta majors. Ether fell as much as 5.3% to $3,177, while XRP and Solana underperformed with drawdowns of 10.4% to $1.847 and 9% to $130, respectively, as leveraged positioning was forced out. Why Is Bitcoin And Crypto Down Today? The immediate catalyst was a geopolitics-to-trade headline that landed into a weekend liquidity window: President Donald Trump said the US would impose additional 10% tariffs on imports from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland starting Feb. 1, escalating to 25% on June 1 unless a deal is reached for the US to acquire Greenland. Related Reading Bitcoin Long Signal That Preceded 370% Move Is About To Go Off Again — What To Know 23 hours ago European officials framed the move as coercive and signaled a coordinated response. Dutch Foreign Minister David van Weel called the threat “blackmail,” adding: “It’s not necessary. It doesn’t help the alliance (NATO).” The targeted countries, many of them NATO allies, issued a stark pushback warning that tariff threats “undermine transatlantic relations and risk a dangerous downward spiral,” while EU representatives convened emergency talks over potential retaliation. France’s President Macron threatened EU’s “anti-coercion instrument.” BREAKING: France’s President Macron calls for the EU to activate its “most potent trade weapon” against the US after President Trump’s tariff threat over Greenland. Macron is now calling for the use of the EU’s “anti-coercion instrument.” If used against the US, it would… pic.twitter.com/E47Bpe03lK — The Kobeissi Letter (@KobeissiLetter) January 18, 2026 For Bitcoin and the entire crypto market, the significance isn’t the tariff math in isolation; it’s the abrupt repricing of global growth and policy risk. When macro traders de-risk into headlines like this, liquid markets tend to transmit the shock first and crypto, with its 24/7 structure and deep derivatives footprint, often becomes the pressure valve. On-chain and venue-level indicators suggested the sell pressure was not simply offshore flow. CryptoQuant analyst Mignolet pointed to an elevated “CPG” ( Coinbase Premium Gap), a metric tracking the price differential between Coinbase’s USD market and Binance’s USDT market that is often read as a proxy for US-led demand or supply. “We’re seeing the strongest selling premium (CPG) in recent periods. Since the ETF market was not open at the time, this selling pressure is coming from US whales operating outside of ETFs. It’s one of the traditional selling patterns we’ve seen repeatedly in the past,” Mignolet wrote in a CryptoQuant note . Coinbase Premium Gap | Source: X @cryptoquant_com That framing matters because it implies the move wasn’t driven by ETF creations/redemptions , so the marginal seller was active in spot/OTC and derivatives channels that remain open through the weekend. Related Reading Bitcoin Tailwind: Cathie Wood Sees ‘Reaganomics On Steroids’ Ahead 3 days ago Once spot price slipped through key levels, futures mechanics did the rest. Coinglass data showed 249.422 traders were liquidated, the total liquidations coming in at $874.93 million over the past 24 hours. Longs accounted for $787.92 million versus $87.01 million in shorts, an asymmetric wipeout that typically reflects crowded long exposure being force-closed into falling prices. Crypto market liquidation data | Source: Coinglass At press time, Bitcoin recovered to $93,000. Bitcoin recovers to $93,000, 1-week chart | Source: BTCUSDT on TradingView.com Featured image created with DALL.E, chart from TradingView.com