Cryptocurrency markets experienced a sharp downturn over the weekend of January 19, 2026, following renewed trade tensions between the United States and the European Union. The sell-off was triggered by threats from U.S. President Donald Trump to impose "across-the-board tariffs" on several European nations, escalating from a 10% levy starting February 1 to potentially 25% by June if no agreement is reached. The immediate catalyst was reported to be Trump's reaction to being passed over for the Nobel Peace Prize, which refocused his attention on acquiring Greenland from Denmark.
The macro uncertainty quickly spilled into digital asset markets, cooling risk appetite. Bitcoin (BTC) tumbled from near $97,000 to a low around $92,000 in minutes, shedding over 3%. Altcoins suffered steeper losses: Ethereum (ETH) dipped 4-5%, Solana (SOL) cratered 8-9%, and meme coins like Dogecoin (DOGE) saw double-digit declines. The rapid price movement triggered a cascade of liquidations, with forced sell-offs totaling $871 million in just hours, including over $514 million in long positions liquidated in a single hour.
Against this backdrop, XRP volatility also picked up sharply, with the token falling below $2. The broader pullback prompted some investors to reconsider strategies reliant solely on price appreciation. The article notes a concurrent trend of some market participants turning to cloud mining platforms like NAP Hash to generate daily cash flow and improve income stability during volatile cycles, with some users reportedly earning up to $26,700 per day in settled returns.
Despite the panic, Bitcoin demonstrated relative resilience, reclaiming roughly half its losses by the following Monday. Spot Bitcoin ETFs even saw fresh inflows during the chaos, indicating institutional and large-money players were buying the dip. The event has sparked debate among analysts, with some bearish voices pointing to historical post-halving cool-offs and tariff fights slowing global growth, suggesting Bitcoin could revisit the $67,000–$75,000 range. Supporters counter that the drop was driven by fear and excessive leverage, not broken fundamentals, and that greater institutional involvement this cycle could support a recovery once panic subsides.
