Geopolitical tensions drive crypto market liquidations and bearish pressure
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Crypto Market Selloff Pressured by Geopolitical Risks and Institutional Moves
January 21, 2026
Crypto Signals Daily market brief
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Today’s Setup
Geopolitical tensions drive crypto market liquidations and bearish pressure
Market Selloff: Bitcoin fell below $89,000 amid tariff war concerns, triggering over $1.8 billion in liquidations across BTC and ETH futures and wiping out January gains.
Institutional Accumulation: MicroStrategy made a $2.13 billion Bitcoin purchase during the selloff, raising holdings above 700,000 BTC despite share price decline.
Regulatory Developments: US crypto market structure reform faces political hurdles over stablecoin yields; CFTC launches ‘Future-Proof’ initiative signaling pro-crypto stance.
Watch: Watch for regulatory resolution on stablecoin provisions and further institutional flows shaping market direction.
Top Stories
Bitcoin plunges below $89,000 amid $1.8B liquidations and tariff war jitters
Bitcoin dropped below $89,000 following a global risk asset selloff driven by US tariff threats and geopolitical tensions. This led to over $1.8 billion in futures liquidations across Bitcoin and Ethereum, wiping out gains made earlier in January.
MicroStrategy spends $2.13 billion to buy 22,305 BTC amid volatility
MicroStrategy made its largest Bitcoin purchase since November 2024, acquiring 22,305 BTC for about $2.13 billion and pushing total holdings to 709,715 BTC. The move was funded through equity and preferred stock sales despite the company's stock falling 7% in the market downturn.
US crypto market structure reform stalls amid stablecoin yield disputes
Political disputes over stablecoin yield provisions risk derailing US crypto market structure legislation. Banks oppose allowing crypto platforms to offer yields on stablecoins, fearing deposit outflows. CFTC Chair Mike Selig launched a 'Future-Proof' initiative to modernize crypto regulation.
NYSE and ICE announce 24/7 onchain tokenized stock trading with stablecoin settlement
Intercontinental Exchange and NYSE plan a tokenized securities trading platform offering 24/7 trading, instant settlement via stablecoins, fractional shares, and blockchain-based post-trade systems. Chainlink expanded data streams to support onchain US stock and ETF trading integration.
XRP price slides amid bearish on-chain signals and cautious institutional outlook
XRP declined 3-5% alongside broader crypto market losses despite Ripple’s bullish 2026 outlook and institutional adoption efforts. On-chain data indicates overhead supply creating resistance, while acquisition and stablecoin launches support Ripple’s cross-border payment ambitions.
Also on the Wire
• Prediction markets near monthly volume record after an $814 million day fueled by short-dated contract growth.  ·  The Block
• US Treasury Secretary Scott Bessent reaffirmed Trump's tariff strategy impact on crypto markets, highlighting the Strategic Bitcoin Reserve policy.  ·  Bitcoin Magazine
• Ethereum DeFi platform Makina lost $4 million in a flash loan exploit targeting its USD-USDC liquidity pool.  ·  Decrypt
• Galaxy launched a $100 million hedge fund targeting crypto and traditional stock markets with long-short strategies.  ·  Cointelegraph
• Hong Kong plans to issue its first stablecoin licenses in Q1 2026 as part of regulatory progress.  ·  The Block
• Coinbase CEO Brian Armstrong calls for blockchain democratization to reach 4 billion unbrokered adults globally.  ·  CryptoNews
• Peter Brandt projects Bitcoin could decline to $58,000–$62,000 amid technical weakness and fading momentum.  ·  Bitcoin News
• Coinbase CEO seeks compromises to advance the US crypto market structure bill before midterm elections.  ·  Cointelegraph