Bitcoin tumbled for its sixth straight session on January 20, 2026, crashing to $89,369 and marking the longest losing streak since November 2024. Intraday losses exceeded 3.4% as the price tested lows of $89,162. The cryptocurrency has shed nearly 7% since hitting a peak of $98,000 just six sessions ago. Technical analysis shows Bitcoin trading significantly below its 200 EMA at $105,731, indicating a strong bearish trend. Not great.
Trump’s renewed tariff threats are largely to blame. His escalating rhetoric about acquiring Greenland and slapping 10% tariffs on eight European nations has markets spooked. These tariffs could hit 25% by June. Global markets hate this stuff, and Bitcoin is no exception. Seems like $100,000 will remain a dream until someone puts a muzzle on the tariff talk.
Curiously, Bitcoin ETFs saw $1.4 billion in inflows last week despite the crash. Money flowing in while prices drop? Weird. Experts say this disconnect highlights how Bitcoin’s recent rallies were macro-driven. Without improved US policies and lower interest rates, Bitcoin may continue struggling below the six-figure mark.
The liquidation landscape looks downright terrifying. If prices climb above $90,000, about $435 million in short positions could face liquidation. Drop below $88,000? A whopping $497 million in long positions could get wiped out. Talk about a knife edge.
Some analysts are painting a seriously grim picture. Predictions range from a 25% fall below $70,000 to a catastrophic 40% plunge to $50,000. Yikes. Options markets give a 38% chance Bitcoin stays in the $80,000-$126,000 range for the year. Investors would be wise to consider portfolio diversification as a strategy to mitigate potential losses during this volatile period.
Multiple factors are amplifying the downside risk. Lower trading volumes are making large trades cause bigger ripples. China’s property sector woes aren’t helping. The Fear & Greed Index score of 29 indicates Fear in the market, suggesting potential further downside. Neither is Japanese financial instability. Energy consumption criticisms and tightening regulations add more pressure.
Will Bitcoin crash to $60,000? Maybe. The signs aren’t encouraging. With a potential US government shutdown looming and statistical reporting threatened, uncertainty reigns supreme. Buckle up, crypto fans.
