After closing 2025 fluctuating below $90,000, Bitcoin entered 2026 with renewed optimism. However, the largest cryptocurrency has dropped 4% in the last 24 hours.
For the first time since January 9, Bitcoin's price has fallen below $90,000. At the same time, volatility ripples through the debt market, and stocks and bonds have also declined in value.
Currently, CoinMarketCap records Bitcoin trading at around $89,100. It is now at the same price as the end of 2025, which means that its progress during the last three-week rally is effectively wiped out.
Bitcoin ended 2025 in the $87,000–88,000 price range after falling 30% from its all-time high of $126,000 in October 2025. The much-anticipated “Santa rally” in December failed to materialize due to low liquidity and a lack of catalysts.
Market sentiment shifted dramatically in early 2026. On January 14, the US Bureau of Labor Statistics released an inflation report, showing that prices began to stabilize. This triggered Bitcoin to skyrocket more than 4% in 24 hours and break through the $97,000 mark.
However, geopolitical friction caused Bitcoin to plummet today. US President Donald Trump shook the balance of US-European relations with the threat of imposing new tariffs on European countries. Additionally, Trump also proposed that the US take over Greenland.
This disrupted global markets, affecting more than just Bitcoin. Other altcoins experienced even greater declines. Ether fell by more than 7%, while Solana dropped by 5.3%.
Crypto-related stocks also weakened. Coinbase Global Inc. shares fell by 5.6%, and Strategy Inc. fell by nearly 8%.
After a slow recovery over the past three weeks, Bitcoin returned to its late 2025 levels. Investors are reminded of a simple lesson: in cryptocurrency, volatility is the only constant.
Even if Bitcoin manages to break through $90,000 again, there is no guarantee it can maintain its price for long. So, what is the right investment strategy to deal with volatility? Learn more in the article Volatility Is: Definition, Cause, and Impacts on Cryptocurrency.
