{"id":20224,"date":"2026-01-20T14:27:54","date_gmt":"2026-01-20T14:27:54","guid":{"rendered":"https:\/\/bitunikey.com\/news\/top-3-reasons-for-todays-crypto-market-crash-jan-20\/"},"modified":"2026-01-20T14:28:02","modified_gmt":"2026-01-20T14:28:02","slug":"top-3-reasons-for-todays-crypto-market-crash-jan-20","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/top-3-reasons-for-todays-crypto-market-crash-jan-20\/","title":{"rendered":"Top 3 reasons for today\u2019s crypto market crash (Jan. 20)"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">The Yen is rising and cryptocurrencies are falling as Bitcoin slips while global risk trades unwind.<\/p>\n<div id=\"cn-block-summary-block_e74d0e0220b34b49dab63b2a23a8f8f6\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>The crypto market crash continued on Tuesday, with the valuation of all tokens moving to $3.08 trillion.<\/li>\n<li>This crash occurred as Japanese government bonds jumped to a multi-year high.<\/li>\n<li>The decline also happened after Donald Trump warned of new tariffs on goods from key countries.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p class=\"is-style-default\">The crypto market continues its downturn with Bitcoin (BTC) and most altcoins being in the red, and the valuation of all coins falling by 2% over the last 24 hours to $3.08 trillion.<\/p>\n<ul class=\"wp-block-list\">\n<li>Bitcoin price dropped to $90,000, down from the year-to-date high of $98,000<\/li>\n<li>Ethereum (ETH) fell by 4% to $3,000. <\/li>\n<li>Other top tokens like Solana, Dogecoin, and Monero fell by over 3%.<\/li>\n<\/ul>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">Crypto market cap | Source: CMC<\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\">Japanese bond yields soar\u00a0<\/h2>\n<p>Meanwhile, Japanese government bonds jumped to multi-year highs as signs emerged that the Bank of Japan will maintain a hawkish tone this year.<\/p>\n<p>Economists expect the bank to continue hiking rates to curb the ongoing yen crash. In a note, Citigroup analysts predicted that the bank will deliver three hikes this year, pushing the headline rate to 1.50%, the highest level in decades.<\/p>\n<p>Odds of more hikes have jumped after the Japanese yen slumped and after Prime Minister Sanae Takaichi pledged more tax cuts if she wins the February election.<\/p>\n<p>Higher interest rates in Japan are risky for Bitcoin and other risky assets due to the unwinding of the years-long carry trade. Carry trade is a situation in which investors borrow in a low-interest-rate country and lend in a higher-interest-rate country.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\">Trade war between US and NATO members\u00a0<\/h2>\n<p>President Donald Trump\u2019s decision to impose new tariffs on key allies, including the United Kingdom, Norway, Sweden, and Denmark, is also hurting cryptocurrencies.<\/p>\n<p>The new tariffs stem from escalated tensions with Europe and NATO allies after Trump launched a barrage of social media posts asserting U.S. control over Greenland, just days before attending the World Economic Forum in Davos. <\/p>\n<p>The campaign, which included taunts aimed at French President Emmanuel Macron and Britain, raised fears of a renewed transatlantic trade war and fresh strains on the NATO alliance.<\/p>\n<p>The remarks followed Trump\u2019s weekend announcement of tariffs on European allies who oppose his stance on Greenland, prompting EU leaders to consider retaliatory duties on up to $108 billion in U.S. imports. <\/p>\n<p>Trump has said he intends to \u201cget\u201d Greenland for the U.S., by force if necessary, a claim rejected by Denmark and Greenland\u2019s government, which warned that any such move would violate international law and could effectively end NATO\u2019s postwar security framework.<\/p>\n<p>The EU, on the other hand, has threatened to impose reciprocal tariffs worth over \u20ac93 billion, a move that will lead to a downward spiral in relations.<\/p>\n<p>The Supreme Court is expected to deliver a ruling on the legality of Trump\u2019s tariffs this week. Data on Polymarket shows that most traders believe that the court will rule against these tariffs, and <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.axios.com\/2026\/01\/19\/supreme-court-tariffs-decision-trump\" target=\"_blank\" rel=\"nofollow\">reports<\/a> indicate that the ruling won\u2019t bring much clarity, no matter what it is. <\/p>\n<h2 class=\"wp-block-heading\">Falling interest in the futures market\u00a0<\/h2>\n<p>The crypto market crash also occurred as demand in the futures market continued to fall. CoinGlass data shows that the futures open interest dropped to $136 billion, down from this month\u2019s high of $146 billion.\u00a0<\/p>\n<p>Falling open interest is bearish because it signals weak demand from investors in the futures market. In most cases, cryptocurrencies drop when open interest is falling, and liquidations are rising.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Yen is rising and cryptocurrencies are falling as Bitcoin slips while global risk trades unwind. Summary The crypto market crash continued on Tuesday, with the valuation of all tokens&hellip;<\/p>\n","protected":false},"author":1,"featured_media":13891,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-20224","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/20224","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=20224"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/20224\/revisions"}],"predecessor-version":[{"id":20225,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/20224\/revisions\/20225"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/13891"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=20224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=20224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=20224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}