Bitcoin Falls Below $90K on Geopolitics, Fiscal Worries

Key Moments

Bitcoin Slides as Risk Appetite Deteriorates

Bitcoin moved below key price thresholds on Wednesday as investors pulled back from speculative assets in response to rising geopolitical tensions around Greenland and mounting worries about sovereign finances in major developed economies.

The world’s largest cryptocurrency declined 1.2% to $89,801.1 by 01:10 ET (06:10 GMT), bringing it close to its lowest levels of the year.

Bitcoin has posted a muted start to 2026, struggling to sustain any meaningful upside as global risk appetite weakened. A delay in a major U.S. cryptocurrency regulatory bill further reduced momentum across digital asset markets.

Other cryptocurrencies moved lower in tandem with Bitcoin on Wednesday, reinforcing the broad risk-off tone.

GM and happy Wednesday ☀️$BTC Heatmap update

Yesterday we talked about value shifting lower and the market beginning a new phase of value discovery.

That narrative still holds.

Price has now completed the liquidation sweep and is developing acceptance around the 89k area.… pic.twitter.com/nQS6pXnTQb

— Columbus (@columbus0x) January 21, 2026

Greenland Tensions and Fiscal Anxiety Pressure Crypto

The latest bout of weakness in Bitcoin and the wider crypto complex was driven largely by heightened concerns over U.S. President Donald Trump’s push regarding Greenland.

Trump threatened to impose tariffs on eight European countries until an agreement was reached, and he also declined to rule out potential military action involving the Danish territory.

Trump is scheduled to attend the World Economic Forum in Davos, Switzerland, on Wednesday, where he said he will speak to “various parties” on Greenland.

At the same time, growing unease about the fiscal outlook in advanced economies further undermined demand for high-risk assets. Global bond yields have jumped this week, with the move originating in Japan as investors focused on the scale of the country’s debt burden, described as the largest in the developed world.

Concerns over Japan’s fiscal trajectory intensified after Prime Minister Sanae Takaichi called a snap election for early-February. Market participants have raised questions about how Tokyo plans to finance Takaichi’s proposed large-scale stimulus measures and additional tax breaks.

These geopolitical and fiscal worries kept markets broadly risk averse, prompting a rotation away from speculative instruments such as cryptocurrencies and toward perceived safe havens. Gold, in particular, has attracted strong buying interest and climbed to a series of record highs this week.

Strategy Inc Adds to Bitcoin Holdings but Shares Drop

Bitcoin’s latest pullback came despite fresh buying from its largest corporate holder. Strategy Inc (NASDAQ: MSTR) reported that it had acquired approximately 22,305 Bitcoins between January 12 and January 19, spending a total of $2.13 billion.

This purchase lifts Strategy’s aggregate Bitcoin stash to 709,715 coins, cementing its status as the biggest corporate holder of the cryptocurrency.

However, the disclosure failed to provide significant support for the token’s price. Strategy’s stock fell 7% following the announcement, while Bitcoin itself saw little positive reaction.

Investor sentiment toward Strategy’s Bitcoin-centric balance-sheet approach has deteriorated over the past year, as prolonged weakness in digital assets translated into substantial paper losses for the company.

Earlier in January, Strategy revealed an unrealized loss of $17.44 billion on its digital asset holdings in the fourth quarter. The disclosure intensified scrutiny of the long-term sustainability of Strategy’s Bitcoin accumulation strategy, which is largely financed through debt and equity issuance.

Strategy’s share price has nearly halved over the course of 2025.

Altcoins Follow Bitcoin Lower

Weakness was broad-based across the digital asset market. The second-largest cryptocurrency by market capitalization, Ether, dropped 4.8% to $2,984.21, marking its lowest level since late-December.

Other major altcoins also retreated. XRP declined 1.5%, while BNB fell 3.8%. Solana and Cardano each lost roughly 2%.

In the memecoin segment, Dogecoin and $TRUMP both slid more than 1%.