Bitcoin erased its 2026 gains after sliding to about $87,000 on Jan. 21, 2026, as investors pulled back amid rising geopolitical tensions and expectations of U.S. rate cuts that could weaken the dollar. Nearly $490 million flowed out of U.S.-listed Bitcoin ETFs in one day, adding pressure to the market.
As stated on X by Walter Bloomberg, “BITCOIN WIPES OUT 2026 GAINS. Bitcoin has erased all gains made since the start of 2026 as investors retreat from risk. After rising as much as 12% earlier, the cryptocurrency fell to around $87,000. Nearly $490 million flowed out of U.S.-listed Bitcoin ETFs in one day, signaling weakening confidence. Analysts warn Bitcoin could soon test key support between $80,000 and $84,000 amid geopolitical tensions and market volatility.”
Market commentators linked the drop to fallout from Donald Trump’s decision to pursue Greenland and broader risk-off moves across assets. Traders also cited expectations for future interest-rate cuts that could soften the U.S. dollar.
According to CoinCodex, Bitcoin may rally toward roughly $104,000 by Feb. 21, 2026, a projected gain near 15%. CoinCodex also noted bearish technical indicators, a Fear & Greed Index reading of 24 (Extreme Fear), 14 green days out of 30, and about 3.05% price volatility.
Bitcoin reached a peak near $120,000 in 2025, and investors remain watchful for signs of a renewed upward trend.
