January 29, 2026
Finance

Cryptocurrency Market Experiences Sharp Decline as Bitcoin Falls Below $84,000

Significant losses across major cryptocurrencies amid increased risk-off sentiment and large-scale liquidations

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Summary

The cryptocurrency market has undergone a steep correction with Bitcoin dropping under $84,000, accompanied by notable declines in Ethereum, XRP, Dogecoin, and others. Heightened risk aversion has interrupted the recent commodities rally, resulting in large numbers of trader liquidations. Market participants and analysts emphasize caution, highlighting critical support levels and potential for further downside moves.

Key Points

Bitcoin's price has fallen below $84,000 amid increased risk aversion, affecting the broader cryptocurrency market.
226,842 traders were liquidated in the past 24 hours, representing nearly $948 million in losses according to Coinglass data.
Technical analysts highlight critical support levels for Bitcoin, notably the $86,600 weekly close, with potential for further downside to $80,000.
Gold has rallied significantly, contrasting with the underperformance of major cryptocurrencies like Ethereum and Bitcoin.

In a notable downturn for the digital asset market, Bitcoin has slipped below the $84,000 mark as broader risk-off dynamics temporarily stall the momentum seen in commodities. This decline has reverberated through the cryptocurrency ecosystem, with Ethereum, XRP, Dogecoin, and several other altcoins also experiencing significant price drops within the past 24 hours.

Current prices for leading cryptocurrencies reflect this selloff: Bitcoin is trading near $83,836, Ethereum at approximately $2,790, Solana at about $115.58, XRP at $1.78, Dogecoin around $0.1148, and Shiba Inu near $0.057222. These figures highlight a clear downward trend in valuations amidst uncertainty in market sentiment.

Data sourced from Coinglass reveal that this price correction led to the liquidation of 226,842 trader positions amounting to a total of $948.33 million in losses over the last 24-hour period. This surge in liquidations underscores the extent of volatility currently affecting cryptocurrency markets.

Among the altcoins, Chiliz, Lighter, and Optimism have emerged as the most significant losers over the same timeframe, reflecting a broad-based retreat rather than isolated weakness.

Market experts and traders have provided additional insights and guidance in response to the fluctuations. The analyst known as Altcoin Sherpa noted increased weakness in Bitcoin when examined on lower timeframes, suggesting that while a short-lived rebound is plausible, prioritizing risk management and avoiding the 'falling knife' scenario—the risk of catching a rapidly declining asset—remains essential.

Trader Koala pointed to the $86,600 weekly close mark as a pivotal threshold for Bitcoin. A failure to sustain prices above this mark could lead to bearish reversals across all timeframes, potentially resulting in widespread liquidations before the market finds a sustainable entry point.

Additionally, Trader Mac has forecasted a possible revisit to the $80,000 level for Bitcoin. According to this perspective, pressure from moving averages on higher timeframes may inhibit sustained price recoveries under the current market conditions.

These technical observations are reflected in broader market sentiment, where analysts and market participants contend with an environment of increased uncertainty.

In related developments, market movements juxtapose with gold's performance, which has rallied 18%, capturing investor interest as a traditional safe haven. Ethereum, referenced by notable commentator Tom Lee, experienced a 6% decline but is advised against abandonment despite its current downturn.

Other headline developments within the sector include statements by SEC Chair Caroline A. Crenshaw suggesting that the time may be appropriate to allow crypto inclusion in 401(k) plans, although tokenized stocks remain a subject of regulatory caution.

On the corporate front, shares of Metaplanet declined by 3.5% following a $127 million capital raise focused on Bitcoin-related investments.

Coinbase's recent stance rejecting a Senate crypto bill contrasts with founder Brian Armstrong's apparent openness toward a potential compromise framework.

Meanwhile, innovative initiatives continue as the UAE follows Tether and Fidelity in launching Central Bank-approved stablecoins, illustrating ongoing development in the regulated digital asset space.

Market data summaries indicate Bitcoin losing roughly 6.06%, Dogecoin down 7.49%, Ethereum decreasing 7.28%, Shiba Inu falling 6.68%, Solana retreating 6.88%, and XRP declining by 6.47% at the time of reporting.

Risks
  • Continued price depreciation below key technical support levels may trigger widespread liquidations among traders.
  • Volatility in the cryptocurrency market remains elevated, increasing the risk of sudden and steep price swings.
  • Regulatory uncertainties, including stances on tokenized assets and 401(k) crypto access, may affect market confidence.
  • Market participants face challenges from weakening momentum as moving averages exert downward pressure on prices.
Disclosure
Education only / not financial advice
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Ticker Sentiment
BTC - negative ETH - negative XRP - negative DOGE - negative SHIB - negative
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