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**Cryptocurrency** markets rallied modestly on **January 22, 2026**, snapping a recent downward trend as risk appetite improved amid easing geopolitical tensions. The total market cap rose around 1.5%, with 87 of the top 100 coins in the green. **Bitcoin (BTC)** traded near **$89,500–$90,000**, up about 0.7–1.5% intraday (from lows around $87,000–$88,000 earlier in the week), while **Ethereum (ETH)** gained similarly to hover above **$2,980–$3,000**. Altcoins like Solana (SOL), XRP, and others saw gains of 1–2% or more.
The primary driver was U.S. President Donald Trump’s de-escalation at Davos: he backed off threats of tariffs on EU nations (tied to Greenland/NATO talks) and scrapped broader trade pressures, triggering the so-called “TACO trade” (Trump Always Chickens Out). This boosted equities (U.S. stocks surged) and spilled over to risk assets, including crypto, as tariff jitters faded and gold consolidated. Reduced volatility and profit-taking followed earlier swings, with liquidations easing and leverage cooling.
Additional support came from broader sentiment: positive institutional flows (Bitcoin ETFs saw recent inflows reversing December outflows), optimism around U.S. crypto-friendly policies (e.g., progress on regulatory clarity like the CLARITY Act), and a risk-on rotation after dip-buying post-correction. Macro factors, including stable inflation signals and expectations of Fed caution, contributed indirectly, though no major new economic data hit on the day.
While gains remained constrained (BTC fragile below $90,000, Fear & Greed Index in extreme fear territory), the rebound aligned with equities’ strength and signaled stabilization. Experts note rallies could stay liquidity-driven until stronger conviction (e.g., sustained ETF inflows) emerges. Volatility persists in this range-bound phase.
