Quick Summary
- 1Bitcoin price fell sharply over 36 hours, dropping more than 5% and briefly dipping below $90,000 early Tuesday.
- 2The sell-off coincided with President Donald Trump's announcement of new tariffs on European nations and ongoing legal challenges regarding his authority to impose them.
- 3On-chain data suggests GameStop may be preparing to sell part of its Bitcoin holdings, while Strategy continued its aggressive accumulation.
- 4The market decline occurred alongside a surge in gold prices, indicating a flight to traditional safe-haven assets.
Quick Summary
The world's largest cryptocurrency experienced a sharp decline over the past 36 hours, erasing nearly $5,700 from its price as geopolitical tensions and corporate selling pressure mounted.
Bitcoin traded near $95,500 on Sunday night but fell to around $89,800 by Tuesday morning, extending losses that began with a violent sell-off late Saturday. The move represents a 6% slump in less than two days, driven by a combination of macroeconomic uncertainty and renewed scrutiny of corporate bitcoin treasuries.
The Market Sell-Off
The initial leg lower came Sunday night, when the bitcoin price plunged nearly $4,000 in a two-hour window amid heavy selling across crypto markets. Around 6 p.m. EST, a wave of liquidation-driven selling hit derivatives markets, wiping out more than $500 million in leveraged long positions in roughly an hour.
During this period, total crypto long liquidations topped $525 million, highlighting the intensity of the market correction. The rapid decline caught many traders off guard, as the price action unfolded quickly during a typically lower-volume weekend period.
The selling pressure was not isolated to Bitcoin alone, suggesting broader market weakness. However, Bitcoin's status as the market leader meant its movements had an outsized impact on the entire cryptocurrency ecosystem.
"European leaders warned the tariff threats could trigger a "dangerous downward spiral.""— European Leaders
Macroeconomic Headwinds 🌍
The sell-off coincided with heightened macro uncertainty after U.S. President Donald Trump announced plans to impose sweeping new tariffs on European nations beginning February 1. Under the proposal, a 10% tariff would apply to goods from eight countries — Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland — rising to 25% by June 1 if no agreement is reached.
Trump tied the measures to U.S. efforts to secure Greenland, further escalating transatlantic tensions. European leaders pushed back strongly, warning the tariff threats could trigger a "dangerous downward spiral."
Adding to uncertainty, the U.S. Supreme Court is expected to rule on whether Trump had the authority to impose broad tariffs under emergency powers. The case centers on the use of the International Emergency Economic Powers Act (IEEPA) to declare trade deficits a national emergency. A ruling against the administration could force the government to refund more than $100 billion in tariffs already collected, potentially disrupting budget and defense funding assumptions.
European leaders warned the tariff threats could trigger a "dangerous downward spiral."
Corporate Treasury Moves
On-chain data shows GameStop allegedly transferring a total of 2,396 BTC to Coinbase Prime in January, including 100 BTC on Jan. 17 and 2,296 BTC on Jan. 20. The transfers represent roughly 51% of the company's original 4,710 BTC holdings, sparking speculation that the meme-stock retailer may be preparing to sell part of its bitcoin position.
GameStop added bitcoin to its corporate treasury in mid-2025, purchasing 4,710 BTC during a brief window in May at an average price near $106,000 per coin. While transfers to brokerage wallets are often interpreted as potential selling signals, the company has made no official announcement confirming a sale.
In contrast, Strategy (MSTR), the world's largest publicly traded corporate bitcoin holder, continued to buy aggressively last week. The company disclosed the purchase of 22,305 BTC for approximately $2.13 billion at an average price of $95,284 per bitcoin.
As of Jan. 19, Strategy holds 709,715 BTC acquired at an average price of $75,979, representing more than 3% of bitcoin's circulating supply. Despite the accumulation, Strategy shares fell about 7% in early trading as the bitcoin price slid below $90,000, highlighting the growing sensitivity of bitcoin-exposed equities to short-term price moves.
Market Context & Data
The bitcoin price is currently trading at $90,252, down 3% over the past 24 hours on $45 billion in volume, leaving it about 3% below its seven-day high of $93,302. The network's market capitalization stands at roughly $1.8 trillion, with 19.98 million BTC in circulation out of a capped supply of 21 million.
Interestingly, this flight hasn't been reflected in the bitcoin price. Instead, gold surged to a new all-time high near $4,750, underscoring a flight toward traditional safe-haven assets as risk markets sold off.
The divergence between Bitcoin and gold suggests that despite its growing reputation as a store of value, Bitcoin is still behaving more like a risk asset in the face of geopolitical uncertainty. This behavior pattern has been observed during previous periods of macroeconomic stress.
Looking Ahead
The recent price action highlights Bitcoin's continued sensitivity to both macroeconomic policy and corporate treasury decisions. With the Supreme Court's ruling on tariff authority pending and potential corporate selling pressure from GameStop, the market faces several near-term catalysts.
Investors will be watching closely to see if Bitcoin can stabilize above the $90,000 level or if further downside is ahead. The contrast between Strategy's aggressive accumulation and GameStop's potential divestment illustrates the divergent strategies among corporate Bitcoin holders.
As the market digests these developments, the relationship between Bitcoin and traditional safe havens like gold will remain a key indicator of the cryptocurrency's evolving role in global portfolios.
Frequently Asked Questions
Bitcoin's decline was driven by a combination of macroeconomic uncertainty following President Trump's tariff announcements and corporate treasury movements. The sell-off was exacerbated by liquidation-driven selling in derivatives markets that wiped out over $500 million in leveraged long positions.
Corporate Bitcoin holdings are creating mixed signals in the market. While Strategy continues to accumulate aggressively, purchasing 22,305 BTC last week, GameStop appears to be potentially divesting, transferring 2,396 BTC to Coinbase Prime. These divergent strategies contribute to market uncertainty.
The Supreme Court is expected to rule on whether President Trump had authority to impose broad tariffs under emergency powers. A ruling against the administration could force the government to refund over $100 billion in tariffs already collected, potentially disrupting budget and defense funding assumptions.
Bitcoin's recent behavior contrasts with gold, which surged to a new all-time high near $4,750. This divergence suggests Bitcoin is still behaving more like a risk asset during geopolitical uncertainty, while investors are flocking to traditional safe-haven assets like gold.
