BTC has retreated to the $92,000 level amid unexpected tariff measures

Bitcoin reached a critical point in the market in mid-January. After a brief rally above $95,000 — a level not seen since November of last year — the price soared near $98,000. However, just a few hours later, the situation changed dramatically, and BTC dropped to around $92,000, leading to the closure of positions totaling approximately $850 million across global markets.

Causes of the short-term rally to $95,000

The cryptocurrency’s rise was driven by several positive factors simultaneously. First, the capital flow into Bitcoin ETFs remained stable, demonstrating sustained institutional investor demand. Second, inflation data came in weaker than expected, reducing concerns about tightening monetary policy. Additionally, Bitcoin showed a recovery in trading dynamics compared to physical assets, strengthening its reputation as a digital store of value.

Sharp decline to $92,000: the role of political factors

Unexpected reports of Trump imposing tariffs on eight European countries created a wave of macroeconomic risks in the market. This move instantly reversed the positive trend, prompting traders to close long positions. In response, the European Union began preparing retaliatory measures worth approximately €93 billion, further increasing uncertainty in global financial markets. This demonstrates how sensitive the cryptocurrency market is to geopolitical events and trade conflicts.

Development of tokenization and regulatory initiatives

Amid price fluctuations, important regulatory trends continue to develop. The Clarity Act faced obstacles in the legislative process due to internal disagreements. At the same time, Goldman Sachs is actively exploring practical applications of tokenization technologies, recognizing the potential of digital assets. South Korea is revising legislation on tokenized securities, and the New York Stock Exchange is studying mechanisms for implementing tokenized trading, indicating a global trend of integrating blockchain into traditional financial systems.

Current state and prospects

Currently, it is crucial for the market to keep Bitcoin above the $92,000 level, as this mark serves as a critical support. As of the end of January 2026, the BTC price was $81,280, indicating a significant correction after January’s events. The 24-hour range fluctuated between $80,830 and $84,630, demonstrating ongoing volatility. The further movement of the cryptocurrency will largely depend on the development of trading relations and progress in regulatory areas, adding uncertainty in the short term.