Bitcoin has plunged below the critical $90,000 support level, marking a turbulent week for the cryptocurrency market as Greenland geopolitical tensions and a staggering $1.33 billion in Spot Bitcoin ETF outflows rattled investor confidence. The world's leading digital asset slipped to lows near $87,000 late this week, erasing recent gains and liquidating over $1 billion in leveraged positions. As traders scramble to assess the impact of potential new U.S. tariffs on European allies, the Bitcoin price today reflects a broader risk-off sentiment gripping global financial markets.

Greenland Tensions Spark Geopolitical Market Shock

The catalyst for this week's sharp downturn appears to be a sudden escalation in geopolitical friction involving the United States and several European nations. Markets reacted violently to reports that President Trump has threatened to impose a 10% tariff on goods from eight European countries—including Denmark, Germany, and France—effective February 1, 2026. The ultimatum is reportedly tied to the administration's renewed interest in purchasing Greenland, a strategic move that has created a diplomatic standoff.

This "Greenland gambit" has revived the so-called "Sell America" trade, with investors dumping U.S. assets and riskier plays like crypto in favor of traditional safe havens. The threat of a transatlantic trade war has injected fresh uncertainty into the Bitcoin market analysis 2026 outlook, forcing institutional players to re-evaluate their exposure to risk assets. Unlike the digital gold narrative that often buoys crypto during currency crises, Bitcoin has largely mirrored the sell-off seen in the tech-heavy Nasdaq, highlighting its continued correlation with macro-risk sentiment.

Spot Bitcoin ETF Outflows Hit Record $1.33 Billion

Exacerbating the price drop is a massive retreat by institutional investors. Data from SoSoValue reveals that Spot Bitcoin ETF outflows surged to $1.33 billion for the week ending January 24, marking the sector's worst performance since February 2025. This exodus represents a stark reversal from the prior week's $1.4 billion inflows, signaling a rapid shift in sentiment among Wall Street heavyweights.

The selling pressure was most acute midweek, with Wednesday alone witnessing over $709 million in withdrawals. BlackRock's iShares Bitcoin Trust (IBIT), typically a bastion of consistent inflows, faced significant redemptions, contributing heavily to the bearish momentum. This institutional crypto sell-off suggests that large-scale asset managers are de-risking their portfolios in anticipation of prolonged volatility, leaving the spot market vulnerable to further downside without this critical demand floor.

Crypto Market Liquidations Top $1 Billion

The swift drop BTC below 90k support triggered a cascade of forced selling in the derivatives market. According to Coinglass data, total crypto market liquidations exceeded $1.08 billion within a 24-hour window earlier this week. The vast majority of these were long positions—traders betting on a price increase—who were caught off guard by the geopolitical headlines.

Leverage Flush-Out

This "long squeeze" wiped out over 182,000 trading accounts, with Bitcoin and Ethereum leading the losses. The leverage flush-out has mechanically forced prices lower, as exchanges automatically sold off collateral to cover margin calls. Analysts note that while painful, such events often serve to reset market leverage, potentially paving the way for a more organic recovery once the panic subsides.

Trump Greenland Tariffs Impact and Future Outlook

Looking ahead, the market remains hypersensitive to updates regarding the Trump Greenland tariffs impact. While some late-week reports hinted at a potential de-escalation or "framework for a deal" that could delay the tariffs, the uncertainty has already damaged the technical structure of the market. Bitcoin now faces formidable resistance at the $90,000 and $92,000 levels.

If the $87,000 support fails to hold, technical analysts warn of a potential slide toward $75,000. However, if diplomatic tensions ease and ETF flows stabilize, the current dip could present a buying opportunity for those with a high risk tolerance. For now, caution is the watchword as the intersection of aggressive U.S. foreign policy and fragile crypto market dynamics dictates the trend for early 2026.