Last Updated: January 21, 2026 | Tapbit Market Dip Analysis
Cryptocurrency markets are experiencing renewed selling pressure in mid-January 2026, with total market capitalization dropping approximately 3% to around $3.21 trillion over the past 48 hours. Bitcoin fell below $90,000 (currently hovering ~$89,425–$90,200), while Ethereum led major losses with a decline exceeding 10% toward $2,958. Over 95 of the top 100 coins are in the red, and 24-hour liquidations have surpassed $700 million (predominantly long positions). The primary driver is escalating geopolitical risk from President Trump’s tariff threats targeting eight European NATO nations — explicitly linked to stalled U.S. negotiations over Greenland sovereignty. This guide explains why crypto is down today, the macro/technical reasons, and identifies three coins showing relative resilience with strong risk/reward setups for Tapbit traders.
Current Market Snapshot – January 21, 2026
| Asset / Metric | Value | 24h / 48h Change | Key Level / Note |
|---|---|---|---|
| Total Crypto Market Cap | ~$3.21T | –3% | 95/100 top coins red |
| Bitcoin (BTC) | $89,425–$90,200 | –1.26% (24h) / –5%+ (48h) | Below $90K psychological level |
| Ethereum (ETH) | ~$2,958–$3,010 | –10.81% (48h) | Leading losses, higher beta |
| 24h Liquidations | $700M+ | 80%+ longs | Mostly on Bybit, Binance, Hyperliquid |
| Fear & Greed Index | 24 (Extreme Fear) | Down from 61 last week | Historically contrarian buy zone |
| Gold (XAU/USD) | ~$4,717 (recent ATH) | +1.4% to +2.1% | Safe-haven rotation |
Why Is Crypto Down Today? Main Triggers (Jan 2026)
1. Trump’s Greenland-Linked Tariff Threats on 8 European NATO Nations
The dominant catalyst is renewed geopolitical risk from President Trump’s explicit threat to impose 10% tariffs (escalating to 25% by June 1) on goods from eight NATO countries — Denmark, Norway, Sweden, France, Germany, United Kingdom, Netherlands, Finland — unless these nations cede control of Greenland to the United States.
This move has immediately raised fears of:
- Broader US-EU trade war & supply-chain disruptions
- Potential coordinated EU retaliation
- Accelerated de-dollarization discussions within BRICS & EU
- Global risk-off sentiment → flight to safe-havens (gold up, equities & crypto down)
2. Leverage Flush & Liquidation Cascade
Over $700 million in leveraged positions were liquidated in 24 hours (80%+ longs), amplifying the downside move. Funding rates flipped deeply negative → longs paying shorts heavily. This classic leverage flush clears weak hands but does not necessarily indicate fundamental trend reversal.
3. Macro Overhang & Risk-Off Rotation
Additional pressures include:
- Fed liquidity injection ($55.4B cumulative Jan) not yet fully offsetting tariff fears
- Rising real yields & stronger dollar expectations in some scenarios
- Equity market correlation → Nasdaq & S&P futures also under pressure
3 Coins Showing Relative Strength – Buy-the-Dip Candidates
- Bitcoin (BTC) – $89K–$90K Zone
- Strong support confluence (100-day EMA, prior swing low)
- Reduced whale selling pressure
- Institutional custody wallets still expanding (CryptoQuant)
- Tapbit strategy: DCA spot or long futures on reclaim of $91K
- Solana (SOL) – Relative Outperformer
- Down only ~2.3–3% vs ETH’s 10%+
- High on-chain activity & DeFi TVL resilience
- Tapbit strategy: Spot accumulation or long SOL/USDT perpetuals
- Monero (XMR) – Privacy Coin Rotation Play
- Less correlated to macro risk-off
- Privacy demand rises during regulatory uncertainty
- Tapbit strategy: Spot buy on dips, lower beta exposure
Tapbit Trading Playbook During This Dip
- Create your Tapbit account (0% maker fees)
- Deposit USDT via P2P or card
- Spot DCA: Set limit buys at BTC $88K–$90K / ETH $2,900–$3,000
- Futures entry: Long BTC/USDT perpetuals on reclaim of $91K (20–50x leverage, isolated margin)
- Volatility hedge: Use Tapbit 125x leverage for quick scalps around liquidation clusters
- Risk control: Max 1% account risk per trade; always use isolated margin
Conclusion
The current crypto weakness — led by Ethereum’s >10% drop to $2,958, broader market cap decline to $3.21 trillion, and $700M+ liquidations — is primarily a geopolitical risk-off reaction to Trump’s Greenland-linked tariff threats against eight European NATO nations. While short-term pressure is real, historical patterns show that such fear-driven sell-offs frequently create excellent medium-term entry zones — especially when institutional flows remain supportive on longer timeframes. The next 48–72 hours will be decisive: either continued breakdown or a powerful short squeeze on any sign of de-escalation.
Trade the dip & potential rebound on Tapbit:
- Sign Up on Tapbit (0% maker fees)
- Login & Deposit
- Live BTC, ETH & Crypto Prices
Disclaimer: This article is for informational purposes only and does not constitute investment or trading advice. Cryptocurrency markets are highly volatile and subject to geopolitical events. Always conduct your own research (DYOR) and never invest more than you can afford to lose completely.
