The cryptocurrency market experienced a notable sell-off on Tuesday, January 20, 2026, as major players like Bitcoin and Ethereum faced pressure amidst heightened tariff tensions linked to former President Donald Trump's policies. Bitcoin slipped 2% to $91,100, while Ethereum saw a steeper decline of 4%, trading at $3,105. Other cryptocurrencies also followed suit, with Solana down 3% at $129 and XRP falling 2% to $1.93.

In the midst of these market shifts, certain altcoins showed resilience. CC, MYX, and SYRUP were among the top movers, gaining 12%, 5%, and 4% respectively. The ongoing volatility highlights the fragility of market sentiment, particularly in light of external economic factors.

Amid these fluctuations, the New York Stock Exchange is preparing to offer 24/7 trading for tokenized stocks and ETFs, marking a significant step towards integrating traditional finance with digital assets. This development could reshape trading dynamics, attracting a broader range of investors.

In corporate news, Steak 'n Shake revealed a substantial $10 million exposure to Bitcoin, underscoring a growing trend of companies diversifying their treasury reserves into digital assets. At the same time, Vitalik Buterin, co-founder of Ethereum, called for advanced governance models for decentralized autonomous organizations (DAOs), emphasizing the need for improved accountability and sustainability in the space.

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On a regulatory front, Bermuda outlined plans to create a fully on-chain national economy, partnering with firms like Coinbase and Circle to enhance payment systems and digital identity solutions. Such initiatives reflect a broader ambition to leverage blockchain technology for economic development.

In the realm of exchange-traded funds, Bitcoin ETFs experienced significant outflows, with $394 million leaving the market on Friday, breaking a four-day inflow streak. Conversely, Ethereum ETFs remained in positive territory with $4.7 million in inflows, suggesting that investor sentiment may be shifting selectively.

Meanwhile, meme cryptocurrencies, which have seen their fair share of volatility, also declined. Dogecoin and Shiba Inu each dropped 1%, while PEPE fell by 2%. The market appears to be in a cautious state, reflecting the interplay of external economic pressures and internal market dynamics.

As investors navigate these changing tides, the question remains: How will global economic factors continue to influence cryptocurrency markets in the coming weeks?