Bitcoin Falls Below $90K as ETF Outflows and US Stocks Slide Amid Global Tensions
Global geopolitical tensions under the Trump administration and renewed tariff disputes have rattled risk assets, sending Bitcoin below $90,000. At press time (Jan 21, 2026) Bitcoin traded near $89,516 (-1.42% 24h). The broader crypto market dropped about 2.68%, valuing roughly $3.02 trillion, and Ethereum fell below $3,000. Spot ETF flows showed heavy withdrawals on Jan 20: Bitcoin spot ETFs outflowed $483 million, Ethereum ETFs $230 million, and XRP-based ETF products $53.32 million; Solana-related ETFs saw a modest $3.08 million inflow. Large-scale deleveraging produced approximately $708.9 million in liquidations. US equities were hit the same day, with about $1.3 trillion erased from the market as S&P 500 and Nasdaq moved into the red for 2026, amplifying risk-off sentiment. Key takeaways for traders: heightened macro-driven volatility, significant ETF outflows signaling retail/institutional caution, elevated liquidation risk for leveraged positions, and correlated weakness between crypto and equities that may persist while geopolitical uncertainty remains.
Bearish
The news points to a clear risk-off shift driven by geopolitical escalation and renewed trade tensions. Key bearish signals: (1) Bitcoin breached a psychologically important level ($90K) and is down on 24h; (2) large spot ETF outflows ($483M BTC, $230M ETH, $53.3M XRP) indicate capital withdrawal from passive crypto exposure, reducing demand; (3) $708.9M in liquidations shows leveraged positions are being forced closed, adding selling pressure; (4) simultaneous $1.3T wipeout in US equities increases cross-market contagion and correlation. Historically, similar events—e.g., macro shocks or trade-war fears—have produced short-term accelerated downside in both crypto and equities, with ETF outflows amplifying moves (see 2022 macro drawdown and 2023 ETF flow-driven pullbacks). Short-term implications: elevated volatility, potential for further downside and liquidation cascades; risk management should prioritize reduced leverage, wider stops, and watching ETF flows and spot liquidity. Medium-to-long-term implications: if geopolitical tensions ease and flows stabilize, markets could recover as investors re-enter; however, persistent geopolitical risk may prolong weaker demand and delay sustained bull continuation. Traders should monitor ETF flow reports, futures open interest, liquidation trackers, and macro headlines for trading signals.