The cryptocurrency market experienced a severe downturn on January 21, 2026, losing approximately $150 billion in market capitalization within a 24-hour period. The crash was primarily triggered by Bitcoin's sharp decline below the $90,000 level after it had recently traded above $96,000. This drop was attributed to geopolitical tensions in Northern Europe, which prompted a rotation of capital into traditional safe-haven assets.
Bitcoin's plunge initiated a cascade of liquidations, with leveraged positions worth an estimated $359 million being wiped out. The selling pressure extended beyond Bitcoin, affecting major altcoins including Ethereum and Solana, which recorded double-digit percentage losses. Memecoins experienced even steeper declines during the market-wide bloodbath.
Concurrently, gold reached a new all-time high above $4,800 per ounce, absorbing significant capital inflows as investors sought refuge from crypto market volatility. The stark contrast between crypto's crash and gold's surge highlighted the ongoing competition between digital and traditional stores of value.
In response to the market turmoil, Dogecoin co-founder Billy Markus, who operates under the pseudonym Shibetoshi Nakamoto, offered a characteristically sarcastic commentary. Quoting a Polymarket post that stated "$150,000,000,000.00 has been eliminated from the crypto markets today," Markus responded with a single word: "Oh."
Markus, who created Dogecoin in 2013 with Jackson Palmer, is known for his skeptical attitude toward cryptocurrency markets and traders. Despite his role in creating one of the most famous meme coins, he has publicly stated he holds less than one Bitcoin and a small amount of Dogecoin, and has expressed disbelief in altcoins and meme coins that can be created quickly. He has also confirmed he will never create another cryptocurrency project.
Amid the widespread selling, some institutional players continued accumulating Bitcoin. Michael Saylor's company, Strategy, announced the purchase of 22,305 BTC for approximately $2.13 billion at an average price of $95,284 per bitcoin. This brought Strategy's total Bitcoin holdings to 709,715 BTC, acquired for roughly $53.92 billion at an average cost of $75,979 per bitcoin.
