Crypto Market Update: Trump’s Tariff Threats Trigger US$875 Million Crypto Liquidation Wave
January 19, 2026 – Investing News Network
The cryptocurrency market saw a sharp selloff on Monday, January 19, 2026, triggered by geopolitical tensions following the announcement of new tariff threats from former U.S. President Donald Trump. The news sparked a liquidation wave totaling approximately US$875 million in leveraged crypto positions within 24 hours, pushing Bitcoin down near the US$92,000 mark.
Market Overview
As of 9:00 p.m. UTC, Bitcoin (BTC) was trading at around US$93,068, marking a 2.3% decline over the previous 24 hours. Ether (ETH) dropped even further by 3.8 percent, settling at US$3,214.01. According to Samer Hasn, an analyst at XS Market, Bitcoin’s recent downturn stems largely from escalating geopolitical tensions and domestic political uncertainty in the U.S., notably the stalled leadership transition at the Federal Reserve. Despite rising institutional interest in digital assets, sustained price recovery remains elusive. The long-term bullish case for decentralized cryptocurrencies is gradually strengthening amid concerns about the possible decline of the U.S. dollar’s dominance.
Farzam Ehsani, CEO of VALR, highlighted that digital assets are experiencing heavier losses compared to traditional stocks. He pointed out silver’s rally as an example of divergence from typical risk assets and noted that without interest rate cuts or significant institutional inflows, Bitcoin is likely to struggle to maintain its recent highs.
Among altcoins, XRP was down 2.6% to US$2, and Solana fell 5.4% to US$134.61, reflecting the broader market weakness.
Impact of Tariff Announcements
The sharp downturn was sparked by President Trump’s public announcement that the U.S. intends to impose escalating tariffs on eight European countries as part of a dispute linked to Greenland. The tariffs are set to begin at 10% in February before rising to 25% by June. This announcement triggered a rapid risk-off reaction across cryptocurrency markets, equities, and foreign exchange.
Derivatives data revealed that approximately US$875 million worth of leveraged crypto positions were liquidated within a day. Most of these forced liquidations came from bullish positions caught off guard by the political uncertainty. Bitcoin’s price slid nearly 3%, dropping to levels near US$92,000. Thin liquidity—partly due to holiday trading volumes—amplified the volatility.
European leaders promptly signaled intentions to retaliate against these tariffs, adding to the broader uncertainty permeating global markets.
Other Notable Crypto Developments
MicroStrategy’s Bitcoin Accumulation:
Michael Saylor’s MicroStrategy (NASDAQ: MSTR) continues to fuel speculation of further large Bitcoin purchases after recently disclosing a US$1.25 billion acquisition. Saylor shared a chart tracking the company’s past buys over the weekend, hinting that more acquisitions may be forthcoming. So far this year, MicroStrategy has accumulated nearly 15,000 BTC, raising its total holdings to over 687,000 bitcoins. These coins were mostly purchased at an average price in the mid-US$75,000 range. However, the company’s stock has lagged as investors remain cautious of the risks tied to the firm’s heavy leverage and ongoing capital raises.
Bitcoin Whale Moves After 12 Years:
An early Bitcoin holder who had remained inactive since around 2012 has emerged, selling roughly 2,500 BTC at prices exceeding US$100,000 per coin. This move realized returns exceeding 31,000%, turning initial investments of approximately US$300 per coin into hundreds of millions of dollars—the highest long-term gains in Bitcoin history.
BRICS CBDCs and Cross-Border Trade:
The Reserve Bank of India (RBI) has proposed linking Central Bank Digital Currencies (CBDCs) of BRICS nations to facilitate streamlined cross-border payments and trade. The move looks to reduce reliance on the U.S. dollar and SWIFT systems by promoting interoperable CBDC frameworks. India, host of the upcoming BRICS summit, aims to formalize this initiative, which would require consensus on technology and regulatory standards among member countries. Presently, while pilot projects are underway, no BRICS country has fully launched a retail CBDC.
NYSE Plans 24/7 Tokenized Trading:
The New York Stock Exchange (NYSE) announced plans for a new platform to enable 24/7 trading and on-chain settlement of tokenized U.S.-listed equities and ETFs. The platform will allow immediate settlement using tokenized capital and stablecoins, along with fractional share trading by dollar amounts. Tokenized shares will maintain dividend and shareholder governance rights. The NYSE is seeking regulatory approval and collaborating with banks like BNY Mellon and Citi to support tokenized deposits and collateral.
Bermuda’s On-Chain Economy Vision:
Bermuda has partnered with Circle Internet Group (NYSE: CRCL) and Coinbase Global (NASDAQ: COIN) to establish the world’s first full-scale on-chain national economy. The initiative includes using the USDC stablecoin for everyday payments and settlements, piloting government agency stablecoin transactions, onboarding local banks and insurers, and implementing digital literacy programs. This partnership aims to reduce transaction costs for residents and businesses by leveraging blockchain technology.
Looking Ahead
The recent geopolitical developments underscore how interconnected global politics and cryptocurrency markets have become. Leveraged positions in crypto are particularly vulnerable to sudden risk-off events, especially amid thin liquidity periods. Investors and traders will be closely watching for any escalation in the U.S.-Europe tariff dispute and monitoring central bank moves that could affect risk sentiment.
Meanwhile, infrastructure progress, like the NYSE’s tokenized trading platform and BRICS CBDC interoperability, continues to push the digital asset ecosystem toward broader adoption and integration with traditional finance.
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About the Authors:
Meagen Seatter is an Investment Market Content Specialist with a background spanning Australia, Southeast Asia, and Canada. She focuses on markets including tech, life sciences, and blockchain.
Giann Liguid is a writer specializing in business and government markets. He holds an AB in Interdisciplinary Studies from Ateneo De Manila University.
Disclaimer: Neither Meagen Seatter nor Giann Liguid holds direct investment interests in companies mentioned in this article. This report is for informational purposes only and does not constitute financial advice.