The price of Bitcoin (BTC) has fallen to $88,000 U.S. as investor sentiment turns increasingly bearish amid rising geopolitical tensions.
The fall in Bitcoin’s price comes after U.S. stocks suffered their worst one-day performance since last October, with the blue-chip Dow Jones Industrial Average falling nearly 1,000 points.
At the same time, U.S. Treasury yields have spiked and the American dollar plunged as President Donald Trump continues his threats to acquire Greenland.
Analysts say markets are in the grips of risk-off sentiment as a “sell America” trade grips investors worldwide.
Consequently, Bitcoin’s price has fallen back below the key threshold of $90,000 U.S.
Other digital tokens are also falling, with prices for Ethereum (ETH) and XRP (XRP) down more than 2% on Jan. 21.
Cryptocurrencies have been trying to stabilize throughout January following a steady decline to end 2025. But attempts at a rebound continue to fail.
Analysts say crypto is likely to struggle amid uncertainty caused by Trump’s escalating standoff with Europe over Greenland, which is a territory of Denmark.
Trump has threatened tariffs on European nations that oppose his push for U.S. control or acquisition of Greenland, reviving fears of a global trade war.
Those concerns have rattled financial markets, the U.S. dollar, and the crypto sector.
Market data shows that the latest selloff wiped out more than $1 billion U.S. in leveraged crypto positions amid forced selling among investors and traders.
BTC is down 13% over the last 12 months and currently trading at $88,750 U.S.
