January 23, 2026
Finance

Cryptocurrency Markets Grapple With Volatility Amid $2.1 Billion Options Expiry

Bitcoin struggles below $90,000 as Ethereum, XRP, and Dogecoin exhibit notable price fluctuations

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Summary

Bitcoin continues to trade under the $90,000 mark amid significant liquidation activity. Ethereum has experienced a downturn after losing key support, while XRP maintains a consolidative stance above its 2020 cycle highs. Dogecoin’s price action suggests potential volatility tied to technical wedge formations, coinciding with a broader cryptocurrency options expiry valued at $2.1 billion.

Key Points

Bitcoin trading below $90,000 with $207.90 million in liquidations within 24 hours.
Net outflows occurred in Bitcoin and Ethereum ETFs, totaling $32.1 million and $41.98 million respectively.
Technical analysis identifies Bitcoin support at $87,400 and potential downside near $84,000 based on Fibonacci extensions.
Ethereum shows weakening momentum with likely further declines toward $2,800–$2,850 support zone before any upward reversal.

Bitcoin's price remains suppressed below the significant threshold of $90,000, reflecting a cautious market environment as liquidations have accumulated to approximately $207.90 million in the last 24 hours. This trading dynamic unfolds amid substantial movements in related investment vehicles, with Bitcoin exchange-traded funds (ETFs) recording net outflows of $32.1 million on Thursday. Ethereum ETFs have seen an even larger departure, totaling $41.98 million in net outflows during the same period.

Current pricing data highlights Bitcoin hovering around $89,130.68, while Ethereum stands near $2,934.60. Other noteworthy cryptocurrencies include Solana at $127.39, XRP at $1.90, Dogecoin trading at $0.1251, and Shiba Inu priced around $0.057839.

Market analysts focusing on technical aspects have identified critical levels influencing Bitcoin's near-term price action. Ali Martinez, known for chart analysis, pointed to $87,400 as an important support boundary within Bitcoin's ongoing trading channel. In parallel, commentator CryptosBatman identified a potential downside target near $84,000, derived through a 1.618 Fibonacci extension from Bitcoin's recent peak and trough. The analyst emphasized that in phases marked by heightened uncertainty, adopting a strategy of patience and refraining from hasty action could be the most prudent approach.

Turning to Ethereum’s recent price performance, Ted Pillows noted a weakening trend caused by the loss of its previous uptrend support and its inability to break back above the $3,000 mark. He suggested that a further decline into the $2,800–$2,850 support band appears increasingly probable prior to any sustained recovery attempts.

XRP presents a contrasting technical landscape. According to CryptosBatman, XRP remains one of the few cryptocurrencies demonstrating a more optimistic chart setup. A zoomed-out perspective reveals that XRP is consolidating above its 2020 cycle high, a condition which, if maintained, signals bullish consolidation rather than a complete breakdown in price momentum.

The meme coin segment witnessed a downturn, contracting by approximately 1.1% to a total market capitalization near $44.4 billion. This movement broadly aligns with the overall weakening observed across cryptocurrencies. Notably, Ali Martinez remarked on Dogecoin's susceptibility to respect wedge chart patterns, implying that a breakout from its current consolidation structure might trigger a pronounced price move.

Underlying these price dynamics is a major financial event: a $2.1 billion options expiry impacting various cryptocurrencies. This expiry contributes to increased volatility within the market as participants adjust their positions in response to the expiration of derivative contracts.

Investors and traders monitoring these developments are advised to stay alert to evolving price levels and technical patterns while considering the wider context of market liquidity and outflows from investment funds. The interplay between traditional ETFs and direct cryptocurrency holdings remains a key factor influencing near-term price behavior across the digital asset landscape.

Risks
  • Significant liquidation activity may exacerbate Bitcoin's downward price pressure.
  • ETF net outflows could signal reduced investor confidence or shifting asset allocation.
  • Ethereum's failure to regain $3,000 and loss of uptrend support increases risk of further price declines.
  • Heightened volatility around the $2.1 billion options expiry may result in unpredictable market movements.
Disclosure
Education only / not financial advice
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BTC - neutral ETH - negative XRP - positive DOGE - neutral
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