Bitcoin Plunges, Gold Hits New Highs: Is the U.S. Dollar Collapse Underway?

Bitcoin has experienced its longest losing streak since November 2024, dropping to around $89,369 as of January 20, 2026, amid renewed U.S. tariff threats and a broader risk-off sentiment in global markets.Why Bitcoin Is Falling? Losses Extend to 6th Day This sharp decline—down nearly 7% over six sessions from a recent $98,000 peak—contrasts starkly with gold's surge to fresh all-time highs, fueling speculation of an impending U.S. dollar collapse.Bitcoin back under pressure as macro risks weigh on price

Macro Triggers: Tariffs, Dollar Weakness, and Safe-Haven Shifts

President Trump's escalating tariff threats, including 10% duties on eight European nations rising to 25% by June, have sparked widespread market turmoil. European equities fell nearly 2%, dragging risk assets like Bitcoin lower as investors flee to traditional safe havens.Crypto market reels in face of tariff turmoil Gold, often viewed as a hedge against fiat currency devaluation, has refreshed record highs, while the dollar index weakens amid policy uncertainty.

In the cryptocurrency space, this environment amplifies Bitcoin price shocks. BTC tested intraday lows of $89,162—its weakest in two weeks—and now trades below key technical levels like the 50-day EMA at $90,298, signaling bearish momentum.Why is the Bitcoin Price Down Today (January 20th, 2026) Ethereum and Solana have also slumped, down 11% and 14% respectively over the same period, underscoring correlated downside in crypto amid macro pressures.

Bitcoin's Technical Outlook and Recovery Signals

Despite the plunge, analysts note constructive early-2026 momentum prior to this pullback. Bitcoin briefly broke above $94,000 resistance, hinting at potential retests of $100,000 if tariff fears ease. However, failure at the $98,330–$100,762 zone triggered the sell-off, with support now at $90,725. A breach could target $89,226 or lower.Bitcoin (BTC) Price Prediction 2025 2026 2027 - 2030

Short-term forecasts remain mixed: Changelly predicts BTC climbing to $92,218 by January 23 and potentially $100,302 by mid-February, with January averages around $93,189. Yet, persistent tariff risks and a 200-day EMA at $105,731 (15.5% above current levels) suggest volatility ahead, especially as 2026 blockchain trends emphasize institutional adoption and regulatory clarity.

Why Crypto Investors Should Stay Vigilant in 2026

For blockchain enthusiasts, this dollar collapse warning—echoed in analyses like Billy Bambrough's Forbes piece on "It is Now Happening"—highlights Bitcoin's dual role as both risk asset and potential store of value. As gold shines, BTC's correlation with equities exposes it to global policy shocks, but its fixed supply positions it as a digital gold alternative amid fiat concerns.

Key user concerns in the blockchain space include secure self-custody during volatility. Hardware wallets like OneKey offer air-gapped security and multi-chain support, ensuring users retain control over assets like BTC even as markets brace for shocks—ideal for safeguarding holdings through uncertain times.

Monitor tariff developments and technical supports closely; a rebound above $94,000 could signal renewed upside in this high-stakes Bitcoin price prediction landscape.