January 20, 2026
Finance

Cryptocurrency Markets Experience Broad Decline with Bitcoin Dipping Below $90,000

Ethereum also falls under $3,000 amid significant liquidations and technical resistance

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Summary

Cryptocurrency markets saw a pronounced downturn as Bitcoin slipped beneath the $90,000 mark and Ethereum dropped below $3,000, triggering a wave of liquidations totaling nearly $700 million. Despite attempts by major investors to counter the downtrend, key technical barriers have resulted in weakened prices across multiple digital assets, including XRP and Dogecoin.

Key Points

Bitcoin fell below the $90,000 level, closing near $89,648, as concerns over renewed tariff tensions weighed on risk appetite.
Ethereum slipped under $3,000, retreating to approximately $2,997, alongside declines in other major cryptocurrencies such as XRP and Dogecoin.
More than 163,000 traders were liquidated in the past 24 hours, resulting in total losses roughly $693 million, indicating significant market volatility.
Key technical indicators highlight strong resistance around Bitcoin’s 50-week exponential moving average, with mixed signals emerging from moving average crossovers.

Bitcoin, the leading cryptocurrency by market capitalization, slipped below the critical $90,000 threshold on Tuesday, reflecting renewed concerns in risk appetite amid escalated tariff tensions impacting global markets. This decline contributed to sweeping liquidations across the crypto landscape, with more than 163,000 traders losing positions amounting to a staggering $693 million within the past 24 hours, according to data from Coinglass.

Alongside Bitcoin's descent to approximately $89,648, Ethereum endured a sharp drop to near $2,997, crossing below the psychologically pivotal $3,000 barrier. This movement dragged several other major cryptocurrencies lower, including XRP, which fell to around $1.90, and Dogecoin, retreating to the vicinity of $0.1240. Additional tokens such as Solana, at about $127.30, and Shiba Inu, near $0.05777, similarly experienced downward pressure.

The recent market downturn has uneven effects among altcoins. Notably, privacy-focused Monero, Dash, and Hyperliquid appear among the top decliners over the last day, underscoring a broader trend of selling across diverse segments of the crypto market.

Significant developments within the crypto regulatory and investment landscape also punctuate the current environment. For example, regulatory actions have targeted prediction markets, with two countries banning the use of Polymarket in the span of just two days. Additionally, notable voices within the cryptocurrency community have expressed criticism related to legislative proposals, including Ethereum co-founder Vitalik Buterin’s public admonishment of Ripple CEO Brad Garlinghouse for his stance regarding a recent draft crypto bill. These factors introduce added dimensions of uncertainty to the market dynamics.

From an investment perspective, high-profile activity continues to capture attention. BitMine’s Ethereum holdings have escalated to $14.5 billion in value, although its token BMNR simultaneously declined 7%. Meanwhile, Michael Saylor, noted for his substantial Bitcoin acquisitions, reportedly invested around $2.1 billion in recent strategy buys, highlighting a continued interest in accumulating digital assets despite prevailing headwinds.

Technical analysis paints a cautious picture. Entrepreneur and Bitcoin investor Lark Davis highlighted a steep rejection of Bitcoin's price at its 50-week exponential moving average, labeling this configuration as a "kiss of death" — a technical indication often signaling potential trend reversals. The price currently hovers at a critical trendline support, but persistent selling pressure has not been overcome even by significant recent purchases, such as Saylor’s $2 billion investment, suggesting robust overhead resistance.

Conversely, trader and investor Crypto Rand identified a potential early bullish indication. According to him, the 30-day moving average of Bitcoin crossed above the 90-day moving average for the first time since May 2025, which may signal an uptick in short-term sentiment relative to broader trend dynamics. Nevertheless, he cautions that definitive confirmation remains pending.

Further technical observations come from Nic Puckrin, co-founder of Coin Bureau, who noted that Bitcoin has broken down after surrendering a former resistance level that recently functioned as support. He reported that BTC slipped below its 50-day moving average and pointed to an important CME futures gap located between $88,000 and $88,700. Puckrin warned that a decisive failure to hold above this level could open the path toward the yearly opening price near $87,500.

Market data and rankings indicate additional weakness among other leading cryptocurrencies. Ethereum’s price decline of over 6%, Dogecoin’s fall approaching 4%, and similar drawbacks for Solana, Shiba Inu, and XRP reflect a widespread loss of momentum and negative investor sentiment.

In summary, the cryptocurrency market is facing substantial downward pressure driven by geopolitical uncertainties, regulatory developments, and challenging technical levels. Despite intermittent signals of potential bullish reversals and notable institutional buying, prevailing market conditions suggest continued volatility and caution in the near term.

Risks
  • Ongoing global tariff threats contribute to market instability, potentially affecting cryptocurrency valuations.
  • Regulatory actions, including bans on crypto prediction markets, add uncertainty to crypto trading and investment climates.
  • Technical breakdowns below critical support levels could trigger further declines in Bitcoin and other cryptocurrencies.
  • Liquidity challenges and rapid liquidations increase market volatility, jeopardizing price stability in the short term.
Disclosure
Education only / not financial advice
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Ticker Sentiment
BTC - negative ETH - negative XRP - negative DOGE - negative SOL - negative
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