Cryptocurrency markets experienced a period of cautious stabilization followed by a sharp downturn, driven by shifting sentiment and external political pressures. On January 20, 2026, Bitcoin (BTC) hovered near the $92,000 mark, trading at $92,360, down a modest 0.4% over 24 hours. This represented a stabilization after a previous sharp sell-off, as traders remained wary amid broader macroeconomic uncertainty.
Market sentiment, as gauged by prediction platform Polymarket, weakened significantly. The probability of Bitcoin reaching $100,000 by the end of January fell to just 21%, while bets for a rise to $105,000 stood at a mere 7%. Conversely, odds of a drop to $85,000 and $80,000 increased to 18% and 6%, respectively.
Ethereum (ETH) underperformed slightly during this period, slipping 0.8% to $3,183. XRP bucked the minor downtrend, rising 0.2% to $1.96. Sector performance was mixed, with AI-related tokens leading losses, dropping more than 3.5% in 24 hours, and the real-world assets (RWA) sector declining over 1%.
The situation deteriorated sharply on January 21. Crypto markets slid broadly, with total market capitalization down more than 3% as selling pressure intensified. The downturn was attributed to threats of new tariffs from former President Donald Trump, sparking a risk-off mood across financial markets.
Bitcoin fell 4%, briefly dipping below $88,000 before stabilizing near $89,000. Ethereum underperformed significantly, sliding 7.06% to break below the psychologically important $3,000 level. The centralized finance (CeFi) sector led the losses, dropping 5.06%. Major exchange tokens like Binance Coin (BNB) declined 5.43% and OKB fell 4.99%. Weakness extended across DeFi, Layer 1, Layer 2, Meme, and RWA sectors.
