Why $BTC was Dumped Below $88,000, Erasing 2026 Gains in $1B Liquidation Wave 📉

Bitcoin plunged sharply as global markets reeled from heightened geopolitical risk, notably fresh tariff threats from U.S. leadership tied to the Greenland dispute, which reignited fears of a trade war and triggered a broader risk-off rotation. The selling intensified over January 20–21, with BTC falling as much as ~9 % over 48 hours, wiping out nearly all of its 2026 gains in a rapid downturn.

This sharp move was matched by waves of forced selling in crypto futures and perpetual markets. Hourly liquidation figures peaked near $360 million, and total long liquidations in the broader crypto market surpassed $1 billion as leveraged positions were violently stopped out. Altcoins like Solana were hit even harder, while Ethereum slid nearly 8 % alongside Bitcoin’s fall.

The catalyst for this sudden shift wasn’t internal crypto weakness alone — risk assets across the board were dragged lower by spillovers from equities and geopolitical uncertainty. Wall Street saw its worst session in months as Trump’s tariff announcements rattled investors, pushing capital toward traditional safe havens like gold, which surged to record levels in the same period.

Despite the aggressive sell-off, by early January 21 UTC, Bitcoin began to find a foothold around the $89,000–$91,000 zone, with some traders suggesting the rout could represent a capitulation bottom and a strategic buying opportunity for longer-term holders who believe in BTC’s structural upside.

BTC’s slip below $88,000 erased recent gains due to a macro-driven risk-off wave, heavy liquidations, and heightened global uncertainty — but stabilization around $89K–$91K raises the possibility that sellers may have exhausted near-term supply before the next phase of price discovery.
#TrumpTariffsOnEurope