Market reacts to tariff turmoil as Bitcoin and Ethereum slip
By John Nada·Jan 26, 2026·3 min read
The cryptocurrency market faces downward pressure as Bitcoin and Ethereum decline amid tariff announcements, while altcoins and tokenized trading show mixed signals.
The cryptocurrency market is seeing significant downward pressure as Bitcoin and Ethereum have both experienced notable declines following the recent announcement of tariffs by former President Donald Trump. Bitcoin is down 2%, trading at approximately $91,100, while Ethereum has dropped 4%, now at $3,105. Other prominent cryptocurrencies are also feeling the effects; Solana is down 3% at $129, and XRP has decreased by 2%, sitting at $1.93.
In contrast, certain altcoins bucked the trend, with CC, MYX, and SYRUP showing strong gains of 12%, 5%, and 4% respectively. This reaction highlights the mixed sentiment among investors, as some are finding opportunities in lesser-known tokens despite the broader market downturn.
On the institutional side, the New York Stock Exchange (NYSE) has commenced preparations for 24/7 tokenized trading of stocks and exchange-traded funds (ETFs). This move could signal a shift in how traditional markets intersect with digital assets, potentially enhancing the liquidity and accessibility of tokenized assets.
In another notable development, the restaurant chain Steak ’n Shake has disclosed approximately $10 million in Bitcoin exposure. This initiative is part of a broader strategy to establish a corporate Bitcoin strategic reserve, reflecting a growing trend among businesses to integrate cryptocurrencies into their financial frameworks.
Vitalik Buterin, co-founder of Ethereum, recently emphasized the need for more advanced governance models within decentralized autonomous organizations (DAOs). He argues that improved structures could enhance accountability and foster long-term viability in the decentralized ecosystem.
Meanwhile, Bermuda is taking significant steps toward establishing a fully on-chain economy. Collaborating with Coinbase and Circle, the Bermuda government is exploring solutions for payments, identity verification, and tokenized financial infrastructure, positioning itself as a forward-thinking jurisdiction in the blockchain space.
In the corporate treasury and ETF landscape, Bitcoin ETFs faced a setback with $394 million in net outflows on Friday, effectively ending a four-day inflow streak. Conversely, Ethereum ETFs continue to attract interest, recording $4.7 million in inflows, indicating a potential divergence in investor sentiment between the two leading cryptocurrencies.
The meme coin market has mirrored the broader trends, with major tokens such as Dogecoin, Shiba Inu, and PEPE experiencing declines of around 1% to 2%. However, several on-chain projects saw exceptional performance, with USOR, GSD, and Eliza Town leading with gains of 70%, 50%, and a staggering 800% respectively.
As the market continues to react to external pressures and shifts in investor sentiment, the implications for the future of cryptocurrencies and their integration into traditional finance remain uncertain. Investors will be closely monitoring these developments, particularly as regulatory landscapes evolve and new technological advancements emerge.