| Token Icon | Coin | Current Price | 24H High | 24H Low | Volatility |
|---|---|---|---|---|---|
 |
Bitcoin | $90,591.7 | $91,600.00 | $90,800.10 | -0.84% |
 |
Ethereum | $3,096.48 | $3,167.53 | $3,052.6 | -2.26% |
LONDON/NEW YORK — As the first full trading week of 2026 draws to a close, the global cryptocurrency market has suffered a severe "cold snap." As of Friday (January 9), Bitcoin (BTC) has lost the critical psychological support level of $90,000, dragging Ethereum and the broader altcoin market down with it.
While many market participants have dismissed the move as a simple correction, a deep dive into the core data from this week (January 6 - January 9) reveals a "perfect storm" driven by extreme macro-policy uncertainty, sudden geopolitical crises, and a structural retreat of institutional liquidity.
Below are the five verified core factors driving the sell-off:
1. The Core Source of Panic: US Supreme Court Tariff Ruling (January 9)
The massive "Sword of Damocles" hanging over capital markets this week is undoubtedly the US Supreme Court's pending ruling on the legality of President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose global tariffs.
- The Event: The Supreme Court is scheduled to release its ruling today (January 9). This decision fundamentally alters the logic of US trade policy.
- Market Logic: Investors are trapped in a "lose-lose" anxiety loop. If the Court overturns the tariffs, the US Treasury could face up to $150 billion in tax refunds, triggering chaos in government cash flows. If the Court upholds the tariffs, it confirms unchecked executive power in trade wars, exponentially increasing global trade friction risks.
- Risk-Off Effect: Faced with this epic legal and fiscal uncertainty, risk assets—including US equities and cryptocurrencies—have seen indiscriminate preventative selling, with capital fleeing back to cash and treasuries.
2. Geopolitical Black Swan: Venezuela & "Operation Absolute Resolve" (January 6-7)
- The Event: In early January, US forces launched "Operation Absolute Resolve," resulting in the arrest of Nicolas Maduro. Following this, between January 6 and 7, the US government announced the seizure of related oil tankers and plans to liquidate Venezuelan oil assets.
- Chain Reaction: This aggressive geopolitical move not only caused violent fluctuations in global energy markets but also sparked fears of retaliatory sanctions from nations like Russia. The heightening tension shattered the narrative of cryptocurrency as a "safe haven." Instead, institutions moved to divest from high-risk assets until the geopolitical dust settles, causing crypto markets to buckle alongside energy uncertainty.
3. Liquidity Drain: Massive ETF Outflows & Leverage Flush (January 8)
The retreat of institutional capital was the most visible signal of the crash.
- The Data: Trading data from Thursday, January 8, confirmed a staggering $486 million net outflow from US Spot Bitcoin ETFs in a single day. Industry giants like BlackRock (IBIT) and Fidelity (FBTC) saw rare, significant net redemptions.
- Leverage Cascade: The institutional retreat triggered panic in the retail market. As prices dipped, nearly 100,000 traders were liquidated across the network within 24 hours. This mass liquidation of long positions exacerbated the downward spiral, creating a classic "long squeeze."
4. Regulatory Tightening: Hong Kong Basel Rules Impact (Effective Jan 1)
While the policy came into effect on New Year's Day, the substantive squeeze on liquidity began to materialize heavily this week.
- Background: The Hong Kong Monetary Authority (HKMA) officially implemented new crypto asset capital rules for banks, based on Basel Committee standards, effective January 1, 2026.
- Liquidity Shock: The new rules assign an extremely high risk weight of 1250% to crypto assets (specifically unhedged cryptocurrencies). This means that for every dollar of crypto assets held, banks must set aside an equal amount of capital. This prohibitive cost of capital forced traditional financial institutions to accelerate balance sheet adjustments this week (Jan 6-9), withdrawing liquidity from the crypto market and weakening buy-side support.
5. Supply Shock: Token Unlocks (January 6-10)
Against the backdrop of macro liquidity tightening, specific token unlock events became the "straw that broke the camel's back" for certain sectors.
- The Event: The market faced a dense wave of unlocks this week. The highly watched HYPE unlocked on January 6, followed by LINEA, scheduled to unlock on January 10.
- Market Reaction: Fearing profit-taking by project teams and early investors, the market engaged in "front-running" sell-offs prior to the unlock dates. This localized selling pressure, driven by supply-demand imbalances, was amplified by the fragile broader market environment, further dampening sentiment.
Conclusion
This week's decline was not caused by a single factor, but by the convergence of four cold fronts: Macro, Geopolitics, Liquidity, and Regulation.
