Why Is Crypto Down Today? – January 1, 2026

The cryptocurrency market is experiencing a minor decline today, with the total market capitalization decreasing by 0.8% over the last 24 hours, now estimated at approximately $3.06 trillion. Despite this dip, the market remains stable above the $3 trillion mark. Total trading volume for cryptocurrencies over the past day is around $87.6 billion.

Key Takeaways

The cryptocurrency market cap has decreased by 0.8%, settling at about $3.06 trillion.
Most large-cap cryptocurrencies have experienced slight declines; however, losses remain modest in the top 10.
Investor sentiment in the crypto sector is cautious, reflected by a Fear and Greed Index reading of 31, indicating fear.
Bitcoin (BTC) spot ETFs in the U.S. faced net outflows of $348.1 million on December 31.
Ethereum (ETH) spot ETFs recorded outflows of $72.1 million.
Analysts predict that Bitcoin’s gains in 2026 could be more stable due to easing Federal Reserve liquidity, although high interest rates may limit this.
Bitcoin is currently consolidating between approximately $85,000 and $88,000, with significant support near $80,000 and resistance above $92,000.
Ethereum is stabilizing above $2,900, with recovery possible above $3,100 and risks if it drops below $2,800.
A U.S. federal judge has dismissed a lawsuit against Mark Cuban and the Dallas Mavericks by a crypto investor.

Overview of Crypto Market Performance

As of now, the price movements among the leading cryptocurrencies remain mixed, but most large-cap coins are showing losses over a 24-hour span.

Bitcoin (BTC) has seen a decrease of about 1.2%, trading close to $87,735.

Ethereum (ETH) demonstrates relative strength compared to the broader market, dropping just 0.1% to about $2,981, making it one of the smallest decliners among the top 10 assets.

Solana (SOL) has dropped approximately 1% over the last 24 hours, trading at $124.87, while BNB has declined nearly 0.9%, now at $859.65.

XRP (XRP) has also experienced a loss of about 1%, trading at $1.85. Dogecoin (DOGE) has been one of the weaker performers, falling around 2.1% to $0.1205.

Tron (TRX) stands out for its resilience, showing a 0.7% gain over the past day at $0.2849, making it one of the few large-cap assets in positive territory.

In addition to the major cryptocurrencies, some smaller tokens are experiencing significant price movements. Bitlight is leading gains with an increase of over 120%, while Collect on Fanable and Everlyn have also shown strong double-digit growth.

On the downside, Lighter has been the largest loser among trending tokens, with a drop of more than 8% today.

In 2025, several notable figures in the crypto industry witnessed sharp declines in their personal fortunes, as a volatile market reversal in October erased gains made earlier in the year.

Michael Saylor, the executive chairman of Strategy, saw his wealth plummet by $2.6 billion in the past year, dropping his net worth to $3.8 billion.

Potential Support for Bitcoin Gains in 2026

Bill Barhydt, CEO of Abra, suggests that Bitcoin may benefit from easing U.S. monetary policies in 2026, potentially increasing liquidity in markets. He noted early hints of renewed Federal Reserve bond buying and decreasing interest rates, which he refers to as “quantitative easing light,” could be favorable for risk assets like Bitcoin.

In addition to increased liquidity, Barhydt emphasized the potential benefits of clearer U.S. regulations and rising institutional involvement as positive trends for the long term. Still, short-term expectations remain cautious as data from CME shows limited confidence in an early rate cut in 2026, indicating supportive conditions may take time.

Analysts generally anticipate that gains will be steadier rather than overwhelming. Matt Hougan, CIO of Bitwise, believes in a gradual long-term upward trend with lower volatility, while analyst Linh Tran suggests Bitcoin’s recent decline highlights a focus on fundamentals, broader macroeconomic circumstances, and institutional movements.

With interest rates still elevated and ETF inflows inconsistent, Bitcoin is likely to remain in an accumulation phase early in 2026 rather than entering a rapid rally.

Key Levels and Upcoming Events to Monitor

Currently, Bitcoin is trading around $87,789, experiencing a slight daily gain following its stabilization towards the end of December. The price chart indicates a previous sharp decline from October highs of nearly $126,000, finding support in the $85,000–$88,000 range, where price movements have since tightened.

Over the past few weeks, Bitcoin has largely remained sideways, indicating a consolidation stage following the steep correction. Should around $85,000 see renewed downward pressure, Bitcoin could face further losses towards the $81,000–$80,000 region, which serves as the next major support.

On the upside, a sustained movement above $92,000 would serve as an early indicator of renewed momentum, potentially leading to resistance levels around $98,000 and $103,000.

Ethereum is currently trading around $2,984, slightly outperforming Bitcoin today. The chart indicates that ETH has steadily declined since September highs above $4,600 and is now forming a base near the $2,800–$2,900 area. Recent price actions suggest ETH is trying to stabilize after several tests of this support level.

In the short term, maintaining a position above $2,900 keeps Ethereum stable. Closing above the $3,100–$3,200 range could indicate a recovery phase, with possible upside targets near $3,400 and $3,600. Conversely, falling below $2,800 would weaken the structure and may push ETH down to the next support near $2,600, where buyers previously stepped in during November's sell-off.

Market sentiment remains cautious, with the Crypto Fear and Greed Index at 31, indicating that the market remains firmly in the fear zone.

On the final trading day of 2025, U.S. Bitcoin spot ETFs closed with losses, showing net outflows of $348.1 million on December 31, as reported by SoSoValue. The decrease occurred even though the market remained active, with a total daily trading volume of $2.83 billion.

The outflows were led by BlackRock’s IBIT, which saw $99.05 million exit the fund, followed by Fidelity’s FBTC with $46.58 million in net outflows. Grayscale’s GBTC also experienced significant outflows, recording $69.09 million, while Ark & 21Shares’ ARKB faced $76.53 million in net redemptions.

Despite this daily pullback, cumulative net inflows into U.S. Bitcoin spot ETFs remain robust at $56.61 billion, with total net assets of $113.29 billion, which accounts for approximately 6.47% of Bitcoin’s overall market capitalization.

Similarly, U.S. Ethereum spot ETFs faced pressures towards the end of the year, reporting net outflows of $72.06 million on December 31. Trading activity remained moderate, with $808.1 million transacted during the session.

BlackRock’s ETHA led the outflows, losing $21.51 million, while Grayscale’s Ethereum product recorded $31.98 million in net redemptions. Fidelity’s FETH also added to the outflows with $2.22 million, reflecting overall market caution.

Cumulative net inflows to U.S. Ethereum spot ETFs have remained positive at $12.33 billion, with total net assets at $17.95 billion, representing roughly 5% of Ethereum’s market capitalization.

Additionally, a U.S. federal judge recently dismissed a lawsuit against Mark Cuban and the Dallas Mavericks initiated by a crypto investor. The case aimed to attribute the collapse of Voyager Digital to celebrity promotion and team marketing.

Judge Roy K. Altman from the U.S. District Court for the Southern District of Florida stated in a Friday ruling that the plaintiffs did not demonstrate personal jurisdiction over Cuban and the team, and the court lacked sufficient ties between Florida and the alleged promotion.

This revised article maintains the original content and intent while making it clearer for newcomers to the cryptocurrency market, ensuring ease of understanding and accessibility.