Bitcoin Slides Under $92,000 as Trump Tariffs Loom and Court Decision Nears

By Emir Abyazov

Key highlights:

  • Bitcoin fell nearly $4,000 in one hour as over $500 million in leveraged long positions were liquidated.
  • Large institutional wallets and exchanges led coordinated selling during low-liquidity trading hours.
  • Upcoming tariff decisions and political uncertainty are increasing volatility across crypto and equity markets.

Bitcoin experienced one of its sharpest intraday declines of the month on Sunday evening, shedding nearly $4,000 in under an hour amid a wave of forced liquidations. According to data from the analytical resource The Kobeissi Letter, approximately $500 million worth of long positions were liquidated within just 60 minutes, highlighting extreme leverage across the market.

The sell-off marked a 6% decline from the local high recorded on January 14, when Bitcoin briefly approached the $98,000 level. By the end of the move, prices had stabilized near $92,000, a level widely interpreted by analysts as the result of aggressive selling during thin liquidity conditions.

Institutional selling intensifies market volatility

Reports from cryptocurrency investor Jason Williams indicated that the sell-off was driven largely by institutional participants rather than retail traders. According to data attributed to his analysis, insiders sold approximately 22,918 BTC during the decline. 

Major exchanges and trading firms were also active sellers, with Coinbase reducing holdings by 2,417 BTC, Bybit by 3,339 BTC, Binance by 2,301 BTC, and market maker Wintermute offloading around 4,191 BTC.

Williams suggested that more than $4 billion worth of Bitcoin changed hands during the sell-off, characterizing the event as a highly synchronized reduction of exposure by large market players. Such behavior, while common in traditional financial markets, is increasingly shaping crypto price dynamics as institutional participation grows.

A delayed reaction to political signals

Network economist Timothy Peterson drew attention to the timing of the price move, noting that Bitcoin appeared slow to react to recent political developments. 

Despite continuous trading, the market did not meaningfully respond to President Trump’s tariff-related announcement for roughly 36 hours. According to Peterson’s assessment, price action only accelerated once institutional trading activity picked up during Asian market hours.

Peterson also pointed out that many traders maintained high leverage despite ample warning of potential macro-driven volatility. This combination of delayed reaction and elevated leverage amplified the severity of the move once selling pressure emerged.

Tariff decisions add another layer of risk

Looking ahead, analysts are increasingly cautious as crypto markets face overlapping political and legal catalysts. Investor Crypto Rover warned that the coming week could bring heightened volatility due to two converging events: the implementation of new U.S. tariffs on Europe and an upcoming Supreme Court ruling on the legality of those tariffs.

On January 17, President Trump announced a 10% tariff on European Union imports, marking the most significant escalation in trade tensions in nearly three months. The previous tariff shock on October 10 coincided with a sharp decline in the S&P 500 and the steepest cryptocurrency drawdown in five years.

Trade flows worth nearly $1.5 trillion could be affected, with discussions already underway in Europe regarding potential retaliatory measures. Analysts warn that such actions could disrupt key trade routes and further pressure global risk assets.

The Supreme Court is scheduled to issue its ruling on January 20. Market participants see risk in both possible outcomes: a ruling against the administration could undermine confidence in policy stability, while a ruling in favor could force markets to fully price in the long-term economic impact of the tariffs.

Source:: Bitcoin Slides Under $92,000 as Trump Tariffs Loom and Court Decision Nears

Updated: January 19, 2026 at 3:49 pm