BitcoinMarketsAltcoinsEthereum
|3 min ReadUS & Japan Just Crushed Bitcoin Below $90k
Maya Chen
Senior Analyst
Published
Jan 21, 2026
The $90,000 psychological floor has collapsed. Bitcoin tagged an intraday low of $89,800, effectively wiping out its 2026 gains. The selloff is driven by a toxic macro cocktail: judicial paralysis in Washington and rising hawkishness in Tokyo. The market hates uncertainty, and right now, it has too much of it.
The Tariff Limbo
Traders had priced in a Supreme Court ruling on Trump's tariff authority for Jan 20. They got radio silence. The Court issued opinions on unrelated cases, leaving the critical trade issue unresolved.
This delay is bearish for risk assets. Trump is threatening 10% tariffs on European heavyweights starting Feb 1. If the Court doesn't intervene, these tariffs go live, likely triggering a trade war that drives capital into the US Dollar and out of crypto.
The Yen Carry Killer
Simultaneously, the Bank of Japan (BOJ) is threatening the liquidity spigot. The BOJ has hinted at further rate hikes, while PM Sanae Takaichi pushes aggressive fiscal spending, sending Japanese bond yields soaring.
This is a direct threat to the "Yen Carry Trade"—the massive strategy of borrowing cheap Yen to leverage into assets like Bitcoin. If the BOJ hikes, that cheap money dries up fast.
The Bearish Pivot
Smart money is aggressively repricing risk. Polymarket odds for the Supreme Court upholding Trump's tariffs have spiked to 37% (up from 28% yesterday). Conversely, the odds of Bitcoin hitting $100k in January have collapsed to just 12%.
Veteran chartist Peter Brandt is now eyeing a much deeper correction, targeting the $58k-$62k zone, suggesting the post-election "Trump Pump" is officially dead.
Disclaimer: This document is intended for informational and entertainment purposes only. The views expressed in this document are not, and should not be taken as, investment advice or recommendations. Recipients should do their own due diligence, taking into account their specific financial circumstances, investment objectives and risk tolerance, which are not considered here, before investing. This document is not an offer, or the solicitation of an offer, to buy or sell any of the assets mentioned.