1/19 Morning sharp decline analysis for everyone’s reference:
This morning (January 19, 2026), the fluctuations in the cryptocurrency market were mainly affected by the dual impact of U.S. regulatory policy trends and macroeconomic sentiment. Here are several core reasons that led to this sharp decline:
1. Bill obstruction: Coinbase withdrew support for the CLARITY Act
The most direct incentive was the setback in the progress of the U.S. cryptocurrency regulatory bill. The market originally expected the Senate Banking Committee to promote key market structure reform legislation, but according to the latest reports, Coinbase suddenly withdrew its support for the bill due to dissatisfaction with the amended terms. This led to the postponement of the previously scheduled vote, and the market's optimistic sentiment towards 'compliance clarity' quickly turned into concern, triggering risk-averse sell-offs by institutions and large holders.
2. The White House's tough stance
Reports indicate that the White House is currently considering withdrawing support for the existing market structure bill if a satisfactory agreement cannot be reached between the banking industry and the cryptocurrency sector. This level of governmental policy uncertainty has had a heavy impact on market confidence, especially as Bitcoin attempts to stabilize above $95,000.
3. High leverage contract liquidation
The sharp decline occurred around seven o'clock in the morning (UTC+8), which is usually a time when market liquidity is relatively thin. When Bitcoin fell below key technical support levels (such as $93,000), it triggered a large amount of long position leverage liquidations. According to exchange data, hundreds of millions of dollars in positions across the network were forcibly liquidated in a short period, creating a 'chain reaction' that exacerbated the decline.
4. Macroeconomic environment: Ongoing concerns about Federal Reserve policies and tariffs
Although U.S. stock markets are closed today for Martin Luther King Jr. Day (MLK Day), market sentiment is still overshadowed by last week's hawkish remarks from Federal Reserve officials and the uncertainty of Trump administration tariff policies. Investors tend to reduce their exposure to risk assets during the long weekend.
