Bitcoin Erases Three-Week Rally, Retreating to Year-End Levels
Bitcoin fell 4% to around $88,850, erasing recent gains and returning to its 2025 closing price amid geopolitical uncertainty.Summary
Bitcoin has retreated approximately 4% to around $88,850, wiping out a three-week rally that briefly pushed it over $97,000 and bringing it back to its 2025 closing levels. The year 2025 ended poorly for Bitcoin, closing down about 30% from its October high of $126,000, with December being particularly harsh. Early 2026 saw a rebound above $97,000 following positive inflation data and hopes for the Clarity Act regulatory framework, though the bill's markup was delayed. However, sentiment reversed sharply on January 21st after President Donald Trump's geopolitical actions regarding Greenland and new tariffs caused global market shockwaves, leading to a flight from US assets and increased volatility. As the market stabilizes above $88,000, traders are assessing whether this drop is a buying opportunity or the start of a deeper correction, with further volatility expected due to upcoming Supreme Court arguments.
(Source：BeInCrypto)