Bitcoin tests $92,000 support as worries about US regulation, Greenland tensions trigger sell-off

Bitcoin sank to a low of $92,234 early on January 20 but recovered some of the losses to trade at $92,721, still down 2.43 percent from the previous day, on regulatory concerns in the US and growing tensions with the European Union over Greenland.

The world’s largest cryptocurrency remained volatile, as it had touched $95,451 before taking the fall.

“Bitcoin is testing whether the $92,000 area will hold as support after failing to break above $98,000. This recent drop was amplified by liquidations, with hundreds of millions of dollars in leveraged longs wiped out. Price has settled into a tight range, with macro events now driving sentiment,” Riya Sehgal, Research Analyst, Delta Exchange, said.

Bitcoin remains range-bound, with support at $92,000 keeping the structure intact. Still, real strength is likely only above $94,600–$96,000, while a drop below $91,800–$90,000 could invite deeper declines, Sehgal said.

Other crypto tokens were volatile too. ADA was down 7.49 percent, ETH 2.92 percent, XRP 1.95 percent and SOL 5.94 percent. Tether traded flat and USDC gained 0.01 percent in the past 24 hours.

“Ethereum slides below $3200, XRP below $2, Solana trades close to $133 and Dogecoin plunges below $0.13. Meanwhile, BNB displays acute strength by holding above $928 while Cardano drops to $0.36. The top gainers for the day include Midnight, which surged by 9.22%; Quant by 6.57%; and Tezos by over 5.67%. Besides, Story drops by more than 10%, followed by Dash by 7.14% and Aster and Chilliz by over 4% each. Despite the downfall, the market sentiments remain neutral, indicating the traders remain hopeful of a strong rebound,” said CoinDCX Research Team.

Check the cryptocurrency prices at 9.28 am on January 20

 Why is bitcoin down? 

“The crypto market is trading largely flat as investors assess ongoing uncertainty around the US-EU trade tensions. The recent pullback flushed out excess leverage, with nearly $875 million in liquidations over the past 24 hours, helping reset positioning and improve market structure. Attention now turns to President (Donald) Trump’s speech at the World Economic Forum, which could act as a near-term catalyst. Any constructive commentary on tariffs may support a fresh leg higher,”  said Akshat Siddhant, Lead Quant Analyst, Mudrex.

According to Avinash Shekhar, Co-Founder & CEO of Pi42, structural drivers such as broader institutional engagement and evolving market participation will continue to shape price action. Investors should maintain a disciplined allocation strategy aligned with their long-term objectives and risk tolerance.

What’s happening in the crypto market?

The developments of the past 24 hours are significant for crypto not because they have driven immediate price movement, but because they highlight how power trust, and coordination continue to function within the global financial system, WazirX founder Nischal Shetty said.

As institutions such as the International Monetary Fund (IMF) frame economic stability around themes like AI-led growth, it reflects the degree to which the current system relies on coordinated policy action, centralised capital allocation, and forward-looking assumptions. Crypto was designed within this broader context, built on transparent and verifiable rules rather than projections, a distinction that markets often recognise over time, Shetty said.

Here’s a rundown of the crypto market, according to Shetty:

• Global discussions around resilience and inequality continue alongside systems that concentrate control over money, identity, and access. Crypto markets tend to respond less to the conversations themselves and more to the structural dynamics they reveal. Open blockchain networks enable participation without permission, offering an alternative framework that operates independently of consensus-driven institutional processes.
• At the same time, evolving trade dynamics reinforce the role of money as a geopolitical tool. As cross-border complexity increases, neutral settlement layers become more visible in the global financial landscape. Bitcoin, ethereum, and stablecoins function across jurisdictions and remain accessible regardless of political alignment.
• For ethereum, this environment reinforces its position as a global execution and settlement layer. While short-term market activity reflects broader risk conditions, continued growth in on-chain activity, stablecoin usage, and real-world applications highlights its expanding role within the digital economy.