Bitcoin slides toward $91,000 as crypto markets reprice risk one year into Trump era

Bitcoin has slid toward $91,000, extending a string of six consecutive daily red closes since Jan. 15, after rallying to an eight-week high earlier this month as a macro overhang tempered new year optimism.

The retreat followed bitcoin’s push toward the high $90,000s on Jan. 14, when prices briefly touched levels not seen since November before momentum faded. Over the past 24 hours, most liquidations have hit long positions, as leveraged bets were unwound amid renewed macro uncertainty, per CoinGlass data.

Onchain analytics firm Glassnode said bitcoin’s pullback from recent highs reflects cooling momentum rather than a deterioration in trend. In its latest weekly report, analysts added that the market remains above neutral and points to consolidation rather than a broader reversal.

Market makers echoed that view while flagging the scale of the recent flush. Wintermute said bitcoin’s rally was driven by a mix of strong ETF inflows, softer inflation data, and a catch-up move versus gold, before tariff-related headlines triggered a sharp pullback. The firm estimated roughly $850 million in long liquidations occurred within hours as prices dropped back toward $92,000, clearing leverage that had only recently returned to the market.

Despite the volatility, Wintermute characterized the sell-off as “violent but healthy,” noting that bitcoin did not spiral lower and that ETF demand has remained a key support. Last week saw a $760 million single-day inflow into spot bitcoin ETFs and roughly $1.4 billion over the week, according to Wintermute’s analysis and The Block’s prior reporting.

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Hedging and asymmetric risk

Options markets, however, are pricing in greater caution. Dr. Sean Dawson, head of research at Derive.xyz, said volatility has compressed to multi-month lows even as downside hedging has become more pronounced. Bitcoin’s 25-delta skew has turned decisively negative, signaling that traders are paying a premium for protection against further declines, with options implying roughly a 30% chance of bitcoin falling below $80,000 by late June.

Matt Howells-Barby, vice president at Kraken, stated that crypto markets have displayed asymmetric downside risk in recent months, reacting more sharply to negative headlines than to positive catalysts. Still, he opined that the relatively contained nature of the latest pullback suggests markets may be bracing for volatility around policy rhetoric rather than a sustained risk-off shift.

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The broader crypto market has mirrored that tone. Total market capitalization has eased toward $3.1 trillion, according to Nexo, as investors trim short-term exposure while awaiting greater macro clarity. Analysts have pointed to Davos, an EU emergency summit on trade tensions, and Friday’s U.S. core PCE inflation print as key near-term catalysts.

Prices struggle under Trump

The latest price action arrives as markets mark one year since Donald Trump returned to office, a milestone that has underscored the gap between expectations and price performance across crypto assets.

Bitcoin is down roughly 10% over the past year, while several major altcoins have seen steeper declines, based on The Block’s price page.

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At the same time, crypto has become an increasingly material part of the Trump family’s financial footprint. Estimates suggest crypto-related ventures have added about $1.4 billion to the family’s net worth over the past year — roughly one-fifth of the total — even as token prices have lagged and Trump Media shares have fallen sharply.