Why the Crypto Market Is Down Today – January 21, 2026

Jakarta, Pintu News – The global cryptocurrency market lost nearly $150 billion in the last 24 hours due to cautious investor sentiment. This decline pushed the price of Bitcoin (BTC) down below $88,000, registering a drop of nearly 3%.

Other large-cap cryptos such as Ethereum (ETH) also fell below $3,000 after experiencing a 6% decline. Meanwhile, XRP (XRP), Solana (SOL), TRON (TRX), and Monero also saw declines of between 4% and 18%.

So, what caused this massive sell-off, and why are crypto markets down today?

Trump’s Tariff Warning Shocks Global Markets

One of the main causes of the market decline was renewed tariff concerns raised by US President Donald Trump. He warned eight EU countries about the possible imposition of tariffs, reportedly related to claims against Greenland.

Read also: 3 Reasons Why January is a Crucial Consolidation Phase for Bitcoin!

European leaders quickly rejected this and signaled that they might respond with countermeasures.

Adding to concerns, the US Supreme Court has again delayed a decision on the tariff issue. Investors had hoped for clarity, but the delay has sparked fears that the decision could go in favor of Trump.

Bitcoin ETFs Record Massive Fund Withdrawals

Selling by institutional investors also pressured Bitcoin’s price. Spot Bitcoin ETFs recorded withdrawals of nearly $874.4 million in the last two days. Fidelity led the way with about $357.3 million withdrawn, followed by Grayscale, Bitwise, and ARK Invest.

This continued withdrawal reflects growing caution among institutions amid geopolitical risks.

As a result, capital is moving heavily into traditional safe-haven assets such as gold and silver, both of which have recently hit all-time highs.

$1 Billion Liquidation Adds Pressure

The sharp price drop triggered massive liquidations across the crypto market. Data from CoinGlass shows that 183,050 traders were liquidated in the last 24 hours, with liquidations totaling $1.02 billion.

Almost 90% of the liquidations were long positions, worth around $928.45 million-bullish traders were betting on a recovery, but it didn’t happen. The largest liquidation occurred on Bitget, where $13.52 million worth of BTC/USDT positions were erased.

Read also: Bitcoin Price Plunges to $89,000 Today: Is BTC’s Bull Run Over?

The Next Direction of Bitcoin Movement

In the last three days, Bitcoin price has dropped from around $97,000 to close to $88,000. Meanwhile, the Fear and Greed Index dropped to 32-entering the fear zone, indicating that traders are starting to stay away from risky assets amid heightened uncertainty.

However, veteran trader Peter Brandt recently warned that Bitcoin could drop to the $58,000-$62,000 range in the next two weeks.

He said there is a 50-50 chance that the movement could happen.

Despite the price decline, trading volumes increased, indicating high activity as traders reset their positions.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Coinpedia. Why the Crypto Market Is Down Today. Accessed on January 21, 2026