Why Is Cryptocurrency Down Today?

Why Is Cryptocurrency Down Today? – January 16, 2026

The cryptocurrency market is experiencing a decline today, with a total market capitalization of $3.33 trillion, down by 0.9% in the last 24 hours. A significant number of the top cryptocurrencies have seen price drops, while a few have recorded gains. Notably, South Korea is taking steps to advance its blockchain market by formalizing capital markets for tokenized securities.

Key Takeaways

The cryptocurrency market capitalization has decreased by 0.9% to $3.33 trillion.
Bitcoin is trading at $95,702, down 0.8%, while Ethereum sits at $3,315, down 0.3%.
Dogecoin witnessed the most significant drop at 2.6%, while Tron is the only top coin that increased by 0.5%.
South Korea has moved forward with legislation to regulate tokenized securities on a blockchain.
Bitcoin’s price volatility suggests potential movement towards its previous highs.

Why Is Cryptocurrency Down Today

Current Market Overview

The cryptocurrency market is down today, with a current total market capitalization of $3.33 trillion, reflecting a 0.9% decrease over the last 24 hours. As of now, 88 out of the top 100 coins have experienced price drops, and total trading volume has reached $131 billion.

crypto Price Changes

In the latest market movements, nine out of the top ten cryptocurrencies by market capitalization have seen declines. Here are some highlights as of Friday morning (UTC):

Bitcoin (BTC) has decreased by 0.8% and is trading at $95,702. It is one of the larger losses among major cryptocurrencies today.
Ethereum (ETH) has fallen by 0.3%, currently valued at $3,315, marking one of the smallest declines.
The steepest drop goes to Dogecoin (DOGE), down by 2.6% to $0.14.
XRP has also experienced a 1% decrease, dropping to $2.08.
The only cryptocurrency within the top market cap that registered an increase is Tron (TRX), gaining 0.5% to trade at $0.308.

Of the top 100 cryptocurrencies, 88 are down today. The most significant loss belongs to Zcash (ZEC), which has dropped by 7.7% to $409, followed by Aptos (APT), which is down 5.8%, trading at $1.8. The remaining cryptocurrencies have seen declines of 4.5% or less.

Notable Peaks Among Winners

On the brighter side, within the top 100 coins, Dash (DASH) has surged by an impressive 15.9%, now priced at $95.5. Following that, MemeCore (M) and Pump.fun (PUMP) saw increases of 6.4% and 6.1%, bringing their prices to $1.64 and $0.002912, respectively. Other coins in the green managed to rise by 3% or less.

Crypto Market Trends

South Korea's Blockchain Initiative

In news related to blockchain, South Korea has made significant strides toward formalizing blockchain-based capital markets. Lawmakers are working on legislation to create a legal framework for issuing and trading tokenized securities. This new approach under the revised Electronic Securities Act allows eligible issuers to utilize blockchain technology for creating these securities. Additionally, amendments to the Capital Markets Act enable trading of these products as investment contract securities through brokerages and other licensed intermediaries.

Bitcoin’s Future Outlook

As the chief of markets at YouHodler, Ruslan Lienkha believes that Bitcoin is currently undervalued. He points to a clear divergence from other risk assets, especially U.S. stocks, over recent months. He mentions that such divergences usually don't last long and suggests that Bitcoin is on the path to a fairer valuation, nearing its previous all-time high, rather than moving ahead of its fundamentals.

Lienkha expects that Bitcoin will either rebound to around $90,000 or climb toward the $100,000 mark soon. He notes that the $100,000 level represents significant resistance, while $90,000 will be an important support level if prices pull back.

He further suggests that if U.S. equity indices remain close to their all-time highs, Bitcoin could close the performance gap, reflecting robust investor confidence and favorable financial conditions. Historically, strong performances in equities have provided support for Bitcoin, which Lienkha highlights as a crucial aspect to consider.

Key Levels and Upcoming Events

As of Friday morning, Bitcoin is trading at $95,702 after an initial climb to $97,097, followed by a drop to the $95,500 region before attempting another recovery. The cryptocurrency recorded a low of $95,132 and has been trading sideways since.

In the past week, Bitcoin saw a 5.7% increase, fluctuating between $90,014 and $97,538. Should it fall below $93,000, it could decrease further toward $90,000. Conversely, maintaining the $95,500 level could provide opportunities for a push toward $100,000.

Trading Data

On the other hand, Ethereum is currently priced at $3,315. Earlier in the day, it reached a high of $3,378 before dipping to a low of $3,278, trading within the range of $3,282 to $3,234.

Over the past week, Ethereum appreciated nearly 7%, experiencing highs of $3,379 and lows of $3,068. A breakout above $3,300 could signal a potential rise back to levels of $3,500 and $3,630, while a price decrease might lead toward the $3,100-$3,150 area.

Currently, the market sentiment is showing a slight decline, consistent with the current downturn. The crypto fear and greed index is at 50, down from 54 yesterday, indicating a cautious outlook among traders. However, optimism remains that prices may rise again soon.

Market Sentiment

ETF Flows and Overall Market Sentiment

On January 15, U.S. Bitcoin spot exchange-traded funds (ETFs) saw their fourth consecutive day of positive flows, adding approximately $100.18 million, though this is a substantial decline from nearly $844 million the previous day. Total net inflows currently stand at about $58.22 billion.

Recent trends indicate some outflows after several days of positive momentum, with only three of the twelve ETFs seeing positive flows while two encountered outflows. Notably, BlackRock received $315.79 million, while Fidelity experienced outflows totaling $188.89 million.

ETF Trends

In tandem, U.S. Ethereum ETFs also recorded inflows totaling $164.37 million on January 15, marking their fourth straight day of positive movement. Recent inflows put the total for Ethereum ETFs at $12.91 billion, with only two of the nine funds reporting inflows.

BlackRock leads the pack with $149.16 million in positive flows, while Grayscale added $15.21 million on the same day.

Ethereum ETF Trends

In Other News

In related developments, Megatel Homes, a U.S. home builder, has secured a “no-action” letter from the U.S. Securities and Exchange Commission (SEC), which allows the company to proceed with a universal payments token. The firm plans to launch a crypto payments and rewards token named “MegPrime,” transforming everyday spending into rewards that enable households to earn back a portion of their expenditure.

Quick FAQ

The latest statistics reveal that the cryptocurrency market has declined over the past 24 hours. Meanwhile, the traditional U.S. stock market experienced gains on January 15, with the S&P 500 rising 0.26%, the Nasdaq-100 increasing by 0.32%, and the Dow Jones Industrial Average climbing 0.6%. Market participants are currently processing the latest economic data released alongside bank earnings reports.

At this moment, experiencing a downturn in the crypto market is not unexpected; it commonly follows a series of gains. Analysts maintain that while the recent dip might extend over the weekend, prices are likely to rebound within a relatively constrained range.