Why Is Crypto Down Today? – January 20, 2026

Summary:
Today, the cryptocurrency market is facing a downturn, with a 1.6% decrease in overall market capitalization, now standing at $3.17 trillion. Notably, 85 out of the top 100 cryptocurrencies have experienced price declines. Bitcoin and Ethereum, two major coins, have both dropped in value, prompting discussions about the future direction of the market amid ongoing concerns over economic conditions.

Key Takeaways

The cryptocurrency market has decreased by 1.6%, with a total market cap of $3.17 trillion.
Bitcoin (BTC) is down 1.6% at $91,020, and Ethereum (ETH) has fallen 2.5% to $3,117.
Most top coins have posted losses, with only a few exceptions like Canton (CC) showing gains.
Risks in the market are rising as global stock markets decline, pushing investors towards safer assets like gold.
Upcoming discussions on regulatory frameworks in Davos could impact market sentiment.

Why Is Crypto Down Today

Current Market Overview

The cryptocurrency market today has dropped 1.6%, resulting in a market cap of $3.17 trillion. As of now, 85 of the top 100 cryptocurrencies have seen price declines, and the total trading volume stands at $105 billion.

Notable Movers in the Market

Major Price Movements

As of Tuesday morning (UTC), all top 10 cryptocurrencies by market capitalization have experienced price drops over the last 24 hours:

Bitcoin (BTC): Down 1.6%, currently trading at $91,020.
Ethereum (ETH): Down 2.5%, now priced at $3,117—this marks the largest decline among major coins.
Lido Staked Ether (STETH): Experienced a 2.4% drop.
Tron (TRX): Fell by 1.9%, now at $0.3116.
Dogecoin (DOGE): Remained unchanged at $0.127.

Among the top 100 coins, Provenance Blockchain (HASH) reported the largest decrease, plummeting 8.9% to $0.02567, followed by Monero (XMR), down 7.2% to $588. Conversely, Canton (CC) emerged as a standout, posting a remarkable increase of 12.4% to $0.1251.

Market Sentiment and Upcoming Discussions

Coinbase CEO Brian Armstrong is set to address the state of the US crypto market structure in Davos this week, emphasizing ongoing efforts on regulatory frameworks. As he put it, “We’re going to continue to work on the market structure legislation, and meet with some of the bank CEOs.”

In addition, increased activity on the Ethereum network may be linked to address poisoning attacks rather than true user engagement. Security researcher Andrey Sergeenkov highlighted the risks involved, cautioning against the consequences of scaling blockchain infrastructure without prioritizing user safety.

Conditions for Recovery

According to analysts at Bitfinex, a more stable recovery in the crypto market will only occur if the market structure evolves to favor long-term holders over selling pressure. They noted that BTC is entering a supply zone between $93,000 and $110,000, where previous recovery attempts faltered.

The report indicates that LTH (long-term holders) are still sellers, but the rate of BTC distribution has significantly slowed. Currently, realized profits are down to approximately 12,800 BTC weekly compared to prior peaks exceeding 100,000 BTC. Analysts believe that if BTC can successfully navigate through this crucial price zone, it may signify a healthier recovery and potentially reach new all-time highs.

Simultaneously, Mercuryo's co-founder and CEO Petr Kozyakov commented on the recent decline in BTC following economic tensions involving the US President. He remarked that the cryptocurrency market seems to be entering a risk-off phase, as global equities also struggle. This volatility comes as investors increasingly turn to safety in assets like gold and silver.

Price Levels and Market Trends

As of Tuesday morning, BTC is currently priced at $91,020, maintaining a sideways trend over the last 24 hours, fluctuating between $90,765 and $93,301. If it fails to hold this level, a drop below $90,000 towards the $87,600 region is anticipated. Conversely, a breakthrough above $93,000 could set the stage for a possible return to $95,000.

BTC Trading Movement

On the other hand, Ethereum is trading at $3,117, also moving within a narrow range of $3,110 to $3,231. A further decline could potentially lead ETH towards the $3,000 mark and even below. Yet, an upward movement could see it reclaiming the $3,400 level.

Following a period of stability, overall crypto market sentiment has shifted downwards, with the fear and greed index falling from 49 to 45, indicating increased caution among participants amid ongoing macroeconomic and geopolitical uncertainties.

Crypto Market Sentiment

Conclusion

In summary, the crypto market is experiencing notable declines amidst ongoing discussions around regulation and economic uncertainty. Despite some positive movements in specific coins, the overall trend points towards caution and volatility. Investors should stay tuned for upcoming developments and remain aware of market conditions as they evolve.

Quick FAQ
Despite the recent declines in the crypto market, the trend is not alarming. The market has largely fluctuated sideways recently, and outcomes from significant events, such as those discussed in Davos, could influence future movements.