Bitcoin’s price experienced a significant decline in the last 36 hours, dropping over 5% and momentarily falling below $90,000 early Tuesday. This downturn comes amid macroeconomic uncertainty and increased scrutiny of corporate bitcoin treasuries, which have impacted market sentiment. The world’s largest cryptocurrency was trading 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 and continued into Sunday evening and Monday morning. According to data, the move resulted in a significant decline of nearly $5,700 in bitcoin’s price within a span of less than two days. The first significant drop occurred on Sunday night, as the bitcoin price tumbled by almost $4,000 within a two-hour span, driven by intense selling across the crypto markets. At approximately 6 p.m., a surge of liquidation-induced selling swept through the derivatives markets, resulting in the elimination of over $500 million in leveraged long positions within about an hour, while total crypto long liquidations exceeded $525 million during this timeframe. The sell-off occurred amid increased macro uncertainty following U.S. President Donald Trump’s announcement of plans to implement extensive new tariffs on European nations starting February 1.
According to the proposal, a 10% tariff is set to be imposed on goods imported from eight countries: Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. This tariff is expected to escalate to 25% by June 1 if an agreement is not reached. Trump linked the initiatives to U.S. attempts to secure Greenland, intensifying transatlantic tensions. European leaders responded assertively, cautioning that the tariff threats could initiate a “dangerous downward spiral.” As gold reaches a new all-time high close to $4,750, it highlights a significant movement towards traditional safe-haven assets amid a sell-off in risk markets. This flight has yet to be mirrored in the bitcoin price. In a move that could further complicate the landscape, the U.S. Supreme Court is poised to decide on Trump’s authority to implement extensive tariffs utilizing emergency powers. The situation revolves around the invocation of the International Emergency Economic Powers Act to classify trade deficits as a national emergency. A decision unfavorable to the administration may compel the government to reimburse over $100 billion in tariffs that have already been collected, which could significantly impact budget and defense funding projections.
On-chain data indicates that GameStop reportedly transferred a total of 2,396 BTC to Coinbase Prime in January, with 100 BTC moved on January 17 and 2,296 BTC on January 20. The transfers account for approximately 51% of the company’s initial 4,710 BTC holdings, igniting speculation that the meme-stock retailer could be gearing up to liquidate a portion of its bitcoin assets. In mid-2025, GameStop made a significant move by adding bitcoin to its corporate treasury, acquiring 4,710 BTC during a short period in May at an average price close to $106,000 per coin. Transfers to brokerage wallets are frequently viewed as potential selling signals; however, the company has yet to make any official announcement regarding a sale.
In a notable move, Strategy, recognized as the largest publicly traded corporate holder of bitcoin, ramped up its purchases significantly last week. The company announced the acquisition of 22,305 BTC for around $2.13 billion, translating to an average price of $95,284 per bitcoin. As of Jan. 19, Strategy possesses 709,715 BTC, obtained at an average price of $75,979, which accounts for over 3% of bitcoin’s circulating supply. In early trading, Strategy shares experienced a decline of approximately 7% as the bitcoin price dipped below $90,000. This movement underscores the increasing sensitivity of equities tied to bitcoin in response to short-term price fluctuations. The bitcoin price is currently at $90,252, reflecting a 3% decline in the last 24 hours with a trading volume of $45 billion. This positions it approximately 3% under its seven-day peak of $93,302. The network boasts a market capitalization of approximately $1.8 trillion, with 19.98 million BTC currently in circulation, out of a total capped supply of 21 million.