Why Is Crypto Down Today? – January 29, 2026

The cryptocurrency market has experienced a decline today, falling 1.7% over the past 24 hours to reach a total market value of $3.06 trillion. Notably, 90 of the top 100 cryptocurrencies have seen price drops during this time. Key factors contributing to this downturn include Federal Reserve policies, lack of new investment, and ongoing geopolitical tensions.

Key Takeaways

The overall crypto market decreased by 1.7% today.
Most top cryptocurrencies, including Bitcoin and Ethereum, have reported price declines.
The downward trend is influenced by Federal Reserve interest rate decisions and external geopolitical stresses.
Market sentiment remains cautious, leaning towards fear rather than neutrality.

Why Is Crypto Down Today

Current Market Overview

The cryptocurrency market is down today, dropping 1.7% in the last 24 hours to a total value of $3.06 trillion. During this decline, 90 of the top 100 coins have seen their prices fall. The overall trading volume in the crypto market is at $124 billion.

Winners & Losers in Crypto

As of Thursday morning (UTC), prices have decreased for 9 out of the top 10 cryptocurrencies based on market capitalization.

Bitcoin (BTC) has fallen by 1.7%, currently trading at $87,820, which matches its previous day's increase.
Ethereum (ETH) is down 2.5%, with a trading price of $2,942.
Dogecoin (DOGE) saw the most significant drop of 4.5%, now valued at $0.1214.
Solana (SOL) fell by 3.4%, reaching $122.
Binance Coin (BNB) experienced the smallest drop of just 1%, currently at $896.

On a more positive note, the only increase within the top 10 coins came from Tron (TRX), which rose by 0.8% to a price of $0.2945.

Among the top 100 cryptocurrencies, Pump-fun (PUMP) recorded the largest decline, with a 10% drop to $0.003001, while Worldcoin (WLD) managed to gain 5.4%, sitting at $0.4898.

Factors Behind the Market Shift

Gracy Chen, CEO of Bitget, provided insights regarding the Federal Reserve’s recent decision to maintain interest rates at 3.50%–3.75%. This decision was anticipated and aligns with market expectations. Chen suggested that it’s unlikely we’ll see rate cuts until later this year unless economic indicators show significant weakness.

Maintaining the current rates helps to sustain liquidity and supports risk assets while avoiding further restrictions on financial conditions. This could positively influence the crypto market in the short term. Chen believes that both Bitcoin and Ethereum could see continuous consolidation between the $88,000 and $91,000 range, with attempts to reach the psychological level of $95,000.

Jimmy Xue, co-founder and COO of Axis, mentioned that ongoing Quantitative Tightening (QT) might function as a ceiling for risk assets, while concern about potential loss of Fed independence could surprisingly provide crypto with the necessary support.

Fabian Dori, CIO of Sygnum Bank, also pointed out that markets appear to be stuck in a holding pattern rather than shifting policies, as indicated by the recent FOMC meeting.

The Road Ahead: Key Levels to Watch

At the time of writing, Bitcoin is trading at $87,820, having begun the day at $90,315. The price has dropped below the critical $90,000 mark and reached a low of $87,653. Over the past week, Bitcoin has decreased by 2.4%, trading in a range between $86,319 and $90,475. A failure to maintain levels above $86,000 could lead to further decline towards $85,300 and potentially into the $83,000-$84,000 range.

Ethereum is currently at $2,942, having started the day as high as $3,036 but dropping below the $3,000 level, hitting a low of $2,934. Over the past seven days, Ethereum has fallen by 2.2%, trading within a range of $2,801 to $3,034. If ETH cannot hold the $3,000 threshold, it may decline further to $2,890, $2,790, and $2,650.

Market sentiment in the crypto arena saw a slight improvement today, but it still resides within fear territory. The crypto fear and greed index has risen to 38, up from 34, indicating a small uptick in market optimism.

Regarding the US BTC spot exchange-traded funds (ETFs), the previous session closed with negative flows, showing $19.64 million in outflows on January 28. The overall net inflow dropped to $56.33 billion. Among the twelve ETFs, one recorded positive inflows while three showed outflows, with Fidelity gaining $19.45 million.

In contrast, US ETH ETFs experienced minor inflows during the same session, totaling $28.1 million. The total net inflow for ETH ETFs has risen to $12.38 billion, with two out of nine ETFs recording positive responses.

Furthermore, Sygnum has successfully raised 750 BTC for its Starboard Sygnum BTC Alpha Fund from institutional investors, leveraging opportunities for arbitrage in the crypto markets while aiming for a market-neutral approach.

Quick FAQs

The crypto market has halted its recent gains with a decrease over the last 24 hours. During the same time, the US stock market experienced negligible changes. Prior to the closing on January 28, the S&P 500 was down 0.0082%, while the Nasdaq-100 rose by 0.32%, and the Dow Jones Industrial Average gained 0.025%. The recent drop was expected, and minor decreases can often benefit the market by allowing for consolidation, which seems likely to continue in the near future.