Crypto markets saw sharp intraday swings as a flood of political and macro headlines hit simultaneously. Bitcoin dropped below $88,000, highlighting how sensitive the market currently is to policy signals rather than pure technicals.
The catalyst mix included trade tensions, crypto legislation comments, and aggressive rhetoric from Washington — all landing within hours.
By TradingView - BTCUSD_2026-01-21 (1Y)
Reports that the European Union officially suspended trade negotiations with the United States added a fresh layer of uncertainty to global markets.
Risk assets reacted quickly, with crypto following equities lower before stabilising. While the decision is not crypto-specific, it reinforced broader concerns around global trade fragmentation and geopolitical risk.
At the same time, Donald Trump delivered a series of strongly pro-crypto messages:
Trump also dismissed the recent stock market dip as “peanuts” and claimed markets could double from here, adding fuel to speculative sentiment.
Adding to the narrative, Eric Trump stated that banks are “doing everything they can” to block crypto legislation — reinforcing the idea of an ongoing power struggle between traditional finance and digital assets.
Meanwhile, Brian Armstrong, CEO of Coinbase, publicly criticised the French central bank governor’s understanding of Bitcoin, highlighting growing tension between crypto firms and European regulators.
Despite the chaos, price action tells a more nuanced story:
The quick rebound after the dip suggests buyers are still active, especially on political-driven pullbacks.
For now, crypto remains headline-driven:
Until clarity emerges on both US crypto laws and EU–US trade relations, volatility is likely to remain elevated.
$BTC, $ETH

