- Crypto and equities fell sharply on Tuesday amid concerns about tariffs tied to a Greenland dispute.
- Bitcoin dropped to about $88,000 and Ether fell to about $2,900, according to Coinbase data from TradingView.
- Major U.S. indexes slid—S&P 500 down ~2.1% and Dow Jones Industrial Average down ~1.8% per Google Finance.
- Safe-haven metals rose, with Gold and silver reaching record levels, according to a Bloomberg article.
- Analysts cited tariff-related uncertainty and a surge in short positions as drivers; CryptoQuant reported increased shorting after bitcoin reached $95,000.
On Tuesday, Jan. 20, global risk assets fell as reports of possible tariffs tied to U.S. comments about Greenland drove investor concern and reduced risk appetite. The move affected cryptocurrencies, stocks and boosted demand for precious metals.
Bitcoin fell to almost $88,000 and Ether declined to nearly $2,900, according to Coinbase data from TradingView. U.S. stock indexes also moved lower; the S&P 500 lost about 2.1% and the Dow Jones Industrial Average dropped about 1.8%, per Google Finance. Meanwhile, gold and silver reached record levels, as reported in a Bloomberg article.
The tariff comments originated from statements about Greenland and possible trade actions, as reported by The Associated Press. Analysts linked the uncertainty to the market moves. Brian Huang, cofounder of Glider, wrote via email that “Greenland related tariffs have dragged down bitcoin and stocks today. In the meantime, we see safe harbor assets like gold and silver continue to absolutely surge.” He added, “Throw in uncertainty around Iran and US involvement over there has investors taking risk off. Cryptocurrencies, being the most volatile, always lead the charge here, so it’s no surprise they are down today.”
Tim Enneking, managing partner of Psalion, said “Frustratingly, BTC dropped over the past two days because of Trump’s obsession over Greenland and his willingness to blow up NATO and the very positive, long-standing US relationship with Europe to try to get it.” He noted the contrast with gold’s rise: “If any further demonstration was needed that Bitcoin is not (yet?) a haven asset, the last 48 hours certainly proved it. So, while gold is up almost 7% in the last 48 hours, BTC has dropped around 7%.”
William Stern, founder of Cardiff, wrote that “Today was the ultimate stress test for the ‘digital gold’ narrative, and Bitcoin failed.” He added, “Gold hit an all-time high of $4,750 while Bitcoin dumped.” Stern also said, “When real fear enters the market, institutions don’t buy algorithms; they buy metal.”
Market structure also played a role. Julio Moreno, head of research at CryptoQuant, reported on Telegram that “it looks like there was a spike in short positions, traders opened short positions since Bitcoin reached $95K a few days ago and pushed prices lower.” (A short position is a trade that profits if an asset’s price falls.) CryptoQuant’s data showed short positions dominating trader activity in perpetual futures markets.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Chainlink launches 24/5 US equities streams, eyes $80T ahead
- Tesla Preps Cybercab Production; Musk Warns Slow Ramp in Apr
- Whales Accumulate 36322 BTC as Retail Dumps — Breakout Ahead
- Trump tariff threats sparked Bitcoin sell-off, crypto stocks
- Delaware Life Launches FIA Linked to BlackRock Bitcoin Index
