The cryptocurrency market experienced a broad sell-off on Monday, January 19, 2026, with the total market capitalization falling approximately 2.4%-2.6% to around $3.15-$3.23 trillion. The decline was driven by a combination of heightened geopolitical trade tensions, profit-taking after a recent rally, and a significant wave of forced liquidations in the derivatives market.
Bitcoin (BTC) led the downturn, slipping around 2-3% to trade near $92,100-$93,100, at one point falling to roughly $92,263. Ethereum (ETH) saw sharper losses, declining nearly 4% to around $3,205-$3,215. Altcoins, particularly layer-1 tokens, meme coins, and DeFi assets, underperformed Bitcoin, with losses ranging between 5% and 13%. This pushed the Altcoin Season Index down to 28, indicating a shift back towards Bitcoin dominance. XRP also fell, dropping under $2.0 to trade around $1.87.
A primary technical driver was a massive liquidation event. Data from CoinGlass shows over $864 million in crypto positions were liquidated in 24 hours, with more than $127 million of that in Bitcoin long positions. This "leverage flush" added significant downward pressure as prices dipped.
The sell-off coincided with a risk-off mood across global markets, sparked by renewed trade tensions. Former President Donald Trump announced new tariffs of 10–25% on imports from several NATO allies, including Germany and the UK, prompting a harsh response from the EU and fears of a trade war. This environment prompted investors to shift away from riskier assets like cryptocurrencies.
Further compounding the pressure was regulatory uncertainty in the U.S. The Senate Banking Committee abruptly delayed a markup of the bipartisan "Clarity Act" after Coinbase CEO Brian Armstrong publicly criticized the bill. This postponement highlighted unresolved questions, particularly around stablecoin yields, and dampened investor appetite. Analysts at J.P. Morgan also revised expectations, now forecasting U.S. interest-rate cuts through 2026, removing a potential tailwind for crypto.
Despite the drop, some analysts offered a measured perspective. Crypto analyst Michaël van de Poppe noted that Bitcoin's valuation relative to gold has reached levels last seen near major market bottoms. The overall selling was described as orderly, with some capital rotation into select mid- and small-cap tokens. The Crypto Fear & Greed Index dropped into "Fear" territory at 44. Traders are now watching to see if Bitcoin can hold support near the $92,000–$93,000 level.
