Crypto sell-off hits Bitcoin, XRP and ETH after Trump’s Davos pro-crypto comments; flash pump then $148M of longs liquidated

first published 2026-01-21T03:40:09Z

Bitcoin dropped to $87,790 on Coinbase (its lowest since Dec. 31), fell another 4% on Tuesday and is down 10% from its year-to-date high after wiping out January gains. Over the past 48 hours roughly $1.8 billion was liquidated (about 93% longs) as crypto markets lost about $225 billion in market cap to $3.08 trillion. The sell-off has been linked to renewed U.S. tariff threats and a blowout in Japanese government bond yields; gold hit an all-time high and BTC moved below the 50-day EMA.

AI Analysis

Bitcoin price fell to $87,790, down 4% on Tuesday and 10% from the YTD high; over 48 hours roughly $1.8B of positions were liquidated (about 93% longs); crypto market cap dropped ~$225B to $3.08T; sell-off tied to U.S. tariff threats and a surge in Japanese government bond yields; gold reached an all-time high and BTC fell below the 50-day EMA.

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