![[LIVE] Crypto News Today: Latest Updates for Jan. 21, 2026 – BTC Falls 4%, ETH Slides 7% Under $3,000 on Trump Tariff Threats](https://cryptoepochs.com/wp-content/uploads/2026/01/img_1768970849.avif)
🔥 Key Takeaways
- Bitcoin (BTC) experienced a 4% drop today, January 21, 2026.
- Ethereum (ETH) fell even further, sliding 7% and dipping below the $3,000 mark.
- The primary driver for this market downturn appears to be renewed tariff threats issued by former President Donald Trump.
- Market sentiment reflects increased uncertainty and risk aversion following the tariff announcements.
- Investors are advised to exercise caution and conduct thorough research before making any investment decisions.
Crypto Market Reels as Trump’s Tariff Threats Trigger Sell-Off
The cryptocurrency market is experiencing significant volatility today, January 21, 2026, with Bitcoin (BTC) and Ethereum (ETH) leading the downward trend. According to live updates, BTC has shed 4% of its value, while ETH has taken a larger hit, plummeting 7% and falling below the psychologically significant $3,000 level. The primary catalyst behind this market slump appears to be renewed tariff threats from former President Donald Trump.
Trump’s Tariff Rhetoric Shakes Investor Confidence
While specific details on Trump’s proposed tariffs are still emerging, the mere threat has been enough to instill fear and uncertainty in the crypto market. Historically, tariffs can lead to increased inflation, supply chain disruptions, and a general slowdown in global economic activity. This, in turn, often triggers a flight to safety, with investors selling off riskier assets like cryptocurrencies. The correlation between Trump’s pronouncements and market volatility is becoming increasingly evident, demonstrating the continued sensitivity of the crypto space to geopolitical and macroeconomic factors.
Ethereum Under Pressure: A Deeper Dive
The steeper decline in Ethereum compared to Bitcoin suggests potential vulnerabilities specific to the ETH ecosystem. One possible explanation is that the tariff threats are disproportionately affecting sectors that rely heavily on Ethereum’s infrastructure, such as DeFi (Decentralized Finance) and NFTs (Non-Fungible Tokens). Another factor could be the ongoing discussion surrounding Ethereum’s long-term scalability and its ability to compete with emerging layer-2 solutions. Regardless, the significant drop highlights the need for a more in-depth analysis of the factors impacting Ethereum’s performance in the current market climate.
Navigating the Uncertainty: Strategies for Investors
The current market conditions demand a cautious and informed approach from investors. It is crucial to avoid panic selling and instead focus on conducting thorough due diligence. Consider diversifying your portfolio, carefully assessing your risk tolerance, and staying informed about the latest developments in the crypto space. While the short-term outlook remains uncertain, the long-term potential of cryptocurrencies remains intact. However, navigating this period of volatility requires a strategic and disciplined approach.
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