Bitcoin Plunges Below $91,000 Amid Greenland Standoff

Bitcoin, the world’s largest cryptocurrency, experienced a dramatic price crash on January 20, 2026, plunging below $91,000 as escalating geopolitical tensions surrounding Greenland sent shockwaves across global markets. The sharp decline—nearly 5% for the week—came amid a broader sell-off in U.S. stocks, bonds, and the dollar, as investors rushed toward safe-haven assets like gold and silver, which soared to record highs. The turmoil was triggered by U.S. President Donald Trump’s aggressive push to acquire Greenland, a move that has drawn widespread condemnation from European leaders and rattled investor confidence worldwide.

At the heart of the crisis is President Trump’s threat to impose a 10% tariff on goods from eight European countries—Denmark, Sweden, France, Germany, the Netherlands, Finland, the United Kingdom, and Norway—unless the U.S. is allowed to purchase Greenland. According to The Economic Times, these tariffs are set to take effect on February 1, 2026, unless European leaders acquiesce to Trump’s demand. The announcement has sparked fears of a new U.S.–EU trade war, with the European Union weighing €93 billion (about $101 billion) in retaliatory tariffs against U.S. exports. European Council President António Costa and European Commission President Ursula von der Leyen issued a joint statement warning, “Tariffs would undermine transatlantic relations and risk a dangerous downward spiral.”

The situation escalated further when, as reported by FXStreet, Trump posted on Truth Social that he had discussed Greenland with NATO Secretary General Mark Rutte. He described Greenland as “imperative for national and world security” and confirmed that high-level discussions would take place at the World Economic Forum in Davos. Trump’s stance has not only strained diplomatic ties but also created intense uncertainty in financial markets, as investors grapple with the potential fallout of a transatlantic trade conflict.

Markets reacted swiftly to the rising tensions. Bitcoin fell below its 50-day exponential moving average (EMA) at $92,345, hovering precariously near the $90,000 support level. Technical indicators pointed to further downside risk: the daily relative strength index (RSI) dropped to 47—below the neutral threshold—while the Moving Average Convergence Divergence (MACD) signaled a bearish crossover. Analysts at FXStreet cautioned that a break below $90,000 could open the door to a deeper pullback toward $85,569, aligning with the lower end of Bitcoin’s recent consolidation range and the 78.6% Fibonacci retracement from the April low of $74,508 to the October peak of $126,199.

Sean Dawson, research head at Derive.xyz, told DL News, “While markets appear calm on the surface, macro risks are building. Rising geopolitical tensions between the US and Europe—particularly around Greenland—raise the risk of a regime shift back into a higher-volatility environment, a dynamic not currently reflected in spot prices.” Dawson noted that derivatives positioning data shows traders are bracing for further declines, expecting Bitcoin to drop 17% to $75,000 by June 2026. “From an options perspective, the outlook remains mildly bearish through mid-year. Traders are paying a premium for downside protection,” he added.

The broader crypto market was not spared. On January 20, Bitcoin traded at approximately $90,878, while Ethereum fell 6.3% to $3,013.88, according to Investing.com. Other major cryptocurrencies, including XRP, BNB, Cardano, and Solana, also suffered losses. Altcoins and memecoins like Dogecoin and $TRUMP followed suit, reflecting a general retreat from riskier assets. The total crypto market capitalization dropped by 2.2%, wiping out nearly $70 billion in value in a matter of days.

Meanwhile, gold and silver prices soared as investors sought refuge from the turmoil. Gold surged to an all-time high of $4,737.57 per ounce, and silver hit $95.22—levels never before seen. The rush to safe-haven assets underscored the risk-off mood gripping global markets. As CoinSwitch Markets Desk explained to The Economic Times, “The broader risk-off mood supported safe-haven assets, with gold and silver rising toward $4,700 and $95, while BTC moved sideways. Zooming out, bitcoin has remained within a broad $80K–$98K range for nearly 59 days, consistent with previous post-2022 consolidation phases that typically lasted 52–62 days before a breakout.”

Adding to the pressure on Bitcoin was a delay in a closely watched U.S. crypto regulatory bill. Lawmakers postponed discussion after Coinbase objected to several proposals, weighing further on sentiment. As Investing.com noted, retail sentiment toward Bitcoin remained weak, especially in the United States, with the Coinbase Bitcoin Premium Index showing the cryptocurrency trading at a discount compared to global averages. Long positions in Bitcoin and other cryptocurrencies were liquidated en masse, with Coinglass data indicating $260.32 million in liquidations over the last 24 hours and nearly $900 million earlier in the week.

Despite the gloom, some market participants remain optimistic about Bitcoin’s long-term prospects. Analysts David Brickell and Chris Mills of the London Crypto Club argued that improving macroeconomic conditions could “feed into crypto.” They wrote, “Bitcoin acts as the ultimate hedge, given its borderless, decentralized, ‘safe-haven’ characteristics.” Strategy, the largest publicly listed corporate holder of Bitcoin, appeared to share this view, purchasing 22,305 Bitcoin for roughly $2.13 billion last week at an average price of $95,284. This brought its total holdings to 709,715 coins, acquired at an average price of $75,979 per coin, according to Investing.com.

Still, the near-term outlook remains clouded by uncertainty. Ryan Lee, Chief Analyst at Bitget, told The Economic Times, “We view Bitcoin’s recent slip amid renewed U.S.–EU trade war fears, which triggered roughly $865 million in leveraged BTC liquidations, as a classic macro-driven correction where broader risk-off sentiment temporarily overshadows crypto’s strong fundamentals. This drawdown reflects heightened geopolitical uncertainty rather than a structural breakdown in demand, and signals a liquidity adjustment more than a fundamental shift in Bitcoin’s narrative.” Lee advised, “Traders should interpret the move as a temporary pullback, using volatility to build diversified positions and accumulate at key support levels while monitoring geopolitical developments that influence risk appetite. In the near term, I see BTC stabilizing around $85,000–$95,000 if trade tensions ease and risk sentiment normalizes.”

Ultimately, Bitcoin’s recovery will hinge on the resolution of the U.S.–EU standoff over Greenland. Should trade tensions subside, analysts expect the cryptocurrency could rebound toward the 61.8% Fibonacci retracement level at $94,253. But for now, the market remains on edge, with every diplomatic twist and turn closely watched by investors worldwide.

As the world’s financial centers brace for further volatility, the Greenland saga stands as a stark reminder of how swiftly politics can reshape the fortunes of even the most decentralized and borderless assets.