Bitcoin retreats to 2025 close after three-week rally erased

Beincrypto reports Bitcoin surrendered its 2026 gains, falling approximately 4% in the past 24 hours to around $88,850 as of Wednesday morning Asia time, erasing a three-week rally that had briefly pushed the cryptocurrency above $97,000. The price now sits almost exactly where it closed in 2025; Bitcoin finished that year at roughly $87,000–$88,000 after a roughly 6% annual loss and a December decline of about 22%, its worst monthly drop since December 2018.

Sentiment flipped in early 2026 after a January 14 inflation report showed prices stabilizing, which sent Bitcoin above $97,000 and past the $95,000 technical zone, while optimism around the Clarity Act supported the move even as the Senate postponed its planned markup of the bill to the last week of January.

At the time of writing the token was attempting to rebound after touching a session low of $87,901. Geopolitical developments on January 21, including President Donald Trump’s push to acquire Greenland and threats of new tariffs, rocked markets as US benchmark indexes fell more than 2%, the VIX hit its highest level since November and the dollar slid; Shiyan Cao at hedge fund Winshore Capital told Bloomberg the situation "opened up a tail risk—that people don’t want US assets," adding investors must now price in a political risk premium.

Key Topics

Crypto, Bitcoin, Clarity Act, Donald Trump, Greenland, Vix