On January 21, 2026, former US President Donald Trump announced on the social media platform Truth Social that, following the "Future Agreement Framework" reached with NATO Secretary General Mark Rutte regarding Greenland and the Arctic region, he would cancel the EU tariffs originally scheduled to take effect on February 1.
The announcement sent shockwaves through global markets: the Dow Jones Industrial Average surged nearly 770 points at one point, while the S&P 500 and Nasdaq Composite both gained more than 1.5%. Traditional safe-haven assets like gold, however, plunged by almost $100.
Event Catalyst: A Statement That Triggered a Market Tsunami
President Trump’s statement once again demonstrated the enormous influence his remarks have on global capital markets. After meeting with the NATO Secretary General during the World Economic Forum in Davos, he posted on Truth Social about the Greenland agreement and his tariff decision. This policy shift shook the markets due to its dual significance: on one hand, the removal of tariff threats eased global trade tensions and offered hope for economic growth; on the other, the agreement framework on Greenland was seen as a breakthrough in geopolitical negotiations.
Markets responded swiftly and dramatically. The three major US stock indices soared, and the Russell 2000 index, representing small-cap stocks, hit a new all-time high. At the same time, traditional safe-haven assets were dumped, with gold and silver prices plunging sharply. This sudden shift toward "risk appetite" directly impacted perceptions of Bitcoin’s role. In an environment of loose liquidity and improved economic outlook, Bitcoin is increasingly viewed as a high-risk, high-reward growth asset, showing strong correlation with tech stocks.
Market Reaction: Extreme Volatility and Massive Liquidations
Trump’s announcement had an immediate impact on Bitcoin prices. Before the news broke, Bitcoin had dropped to nearly $87,000, but then rebounded strongly, breaking through the $90,000 mark.
According to Gate market data, as of January 23, 2026, Bitcoin’s latest price stood at $89,675.8, with a 24-hour trading volume of $1.02B and a market capitalization of $1.79T, accounting for 56.51% of the total cryptocurrency market. Such dramatic price swings dealt a heavy blow to leveraged traders. Market data shows that over $1 billion in crypto positions were liquidated in the past 24 hours.
Of this, long positions saw $672 million in liquidations, while short positions accounted for $335 million. Bitcoin and Ethereum were the hardest hit, with $426 million and $366 million in forced liquidations, respectively.
The intense market volatility once again highlights the high-risk nature of crypto trading—especially during major news events, highly leveraged positions are easily wiped out by sharp market moves.
Historical Perspective: How Tariff Policy Shapes the Crypto Market
This is not the first time tariff policy has influenced the cryptocurrency market. Looking back to 2025, the Trump administration’s tariff agenda became one of the most important macro narratives for the crypto space.
In February 2025, when Trump announced new tariffs on Mexico, Canada, and China, Bitcoin immediately fell to a three-week low near $91,400. Ethereum dropped about 25% over three days. In May of the same year, as the US and China reached a temporary tariff truce, Bitcoin rebounded strongly above $100,000. This "bad news is good news" rebound pattern shows that the market not only prices in negative news but also anticipates potential policy easing.
The most severe test came in October 2025. Trump’s proposal to impose 100% tariffs on Chinese rare earth imports triggered a flash crash. Bitcoin plunged more than 16% in a rapid sell-off, with major exchanges reporting $19 billion in forced liquidations in a single day.
Historical experience shows that tariff policy affects Bitcoin prices through four core channels: growth expectations, inflation outlook, liquidity conditions, and risk sentiment. This pattern reveals that Bitcoin is no longer an isolated risk asset; its price behavior is increasingly linked to global macro sentiment and liquidity.
Technical Perspective: The Battle Over Key Price Levels
From a technical analysis standpoint, Bitcoin is currently locked in a battle over critical price levels. Gate market data shows Bitcoin’s 24-hour price range was $88,510.6 to $90,354.9. This range closely matches key support and resistance levels tracked by market analysts. Technical analysis indicates that the $87,000 to $85,900 area forms a major support zone, while the $92,300 to $93,300 range (near the 50-day and 200-day moving averages) acts as strong resistance. The higher $95,600 to $96,000 zone shows clear distribution signals, with heavy selling pressure as many holders choose to exit at those prices.
The Relative Strength Index (RSI) dynamics are also noteworthy. During periods of intense volatility, Bitcoin’s RSI dropped to around 25, entering oversold territory and indicating waning downward momentum.
The current market structure shows that, despite bullish news, Bitcoin has yet to break through key resistance levels. The average cost basis for short-term holders is around $98,000, making this an important psychological barrier for the market to overcome.
Macro View: The Debate Over Bitcoin’s Asset Classification
This event has reignited debate over Bitcoin’s asset classification. As traditional safe-haven gold plunged, Bitcoin surged alongside other risk assets. This divergence has split market opinion: is Bitcoin a safe-haven asset like gold, or a risk asset akin to equities?
Proponents of Bitcoin as a safe-haven argue that its fixed supply and decentralized nature make it an ideal hedge against fiat currency depreciation. Global investor Ray Dalio has even acknowledged Bitcoin as a "store of wealth." Critics, however, point to Bitcoin’s strong correlation with the Nasdaq and its sensitivity to global liquidity shifts, arguing it behaves more like a risk asset.
The reality may be more nuanced. Bitcoin’s attributes can shift depending on market conditions: in times of abundant global liquidity and robust economic growth, it acts more like a risk asset; during periods of fiat instability or geopolitical tension, its safe-haven qualities may come to the fore.
Fundstrat founder Tom Lee has warned that financial markets may face a "painful downturn" in 2026 before regaining momentum. He notes that escalating tariff policies, changes in Federal Reserve independence, and uncertainty over the new Fed chair could all disrupt markets in the early part of the year.
Outlook: The Dynamic Balance of Policy and Markets
Looking ahead, the Bitcoin market will continue to grapple with multiple uncertainties. Trump’s shifting tariff policies are just one reflection of a complex macro environment. Gate’s model forecasts Bitcoin’s average price in 2026 at $89,660.6, with a possible range from a low of $60,072.6 to a high of $105,799.5. Some long-term projections suggest Bitcoin could reach $136,269.75 by 2031.
Swiss bank models indicate that as long as the $89,200 support holds, Bitcoin could rally toward $94,800 or even challenge $99,000. If that level breaks, $84,500 becomes a crucial defense line for bulls.
On the macro policy front, US-China trade relations, global benchmark tariff adjustments, digital services tax disputes, and pharmaceutical tariffs all pose potential risks to the market. These policies impact not just trade, but also global liquidity, inflation expectations, and risk appetite.
US cryptocurrency legislation is another focal point for the market. At Davos, Trump stated he is working to "ensure the US remains the world’s crypto capital," and revealed that Congress is drafting market structure legislation for the crypto sector.
Behind the Numbers: A Panorama of the Bitcoin Market
A deeper look at current Bitcoin market data offers a more comprehensive view. According to Gate’s latest figures, Bitcoin’s circulating supply stands at 19.97M BTC—about 95% of its maximum supply of 21M BTC. This limited supply is central to its value proposition.
In terms of price trends, Bitcoin has moved -0.47% over the past 24 hours, -6.31% in the past 7 days, but still shows a +2.21% gain over the past 30 days. Over the past year, Bitcoin’s price has changed by -13.58%.
Market sentiment indicators currently rate Bitcoin as "bullish," likely factoring in its market share, price trends, and the broader macroeconomic environment.
It’s worth noting that Bitcoin’s all-time high reached $126,080, while its all-time low was just $67.81—highlighting both the asset’s volatility and its potential for growth.
From the Dow surging nearly 770 points to gold plunging $100, from Bitcoin breaking above $90,000 to over $1 billion in leveraged positions being liquidated, every corner of the global market is reacting to Trump’s statement. Amid wild price swings, Bitcoin is struggling to find direction. The $89,200 support and $98,000 resistance define the current key price range, while the $95,600 to $96,000 zone sees heavy selling from holders. The market constantly oscillates between fear and greed, and Bitcoin continues to redefine its asset attributes and value boundaries within this dynamic.
