Why is crypto down today? After a volatile Thursday session on January 29, 2026, Bitcoin tumbled to an intraday low of $83,383, its weakest point in over two months.
The sharp 6.4% drop came as crypto ETFs posted $1.1 billion in net outflows, and traders braced for tightening liquidity amid rare earth tariff headlines and a hawkish Federal Reserve.
The selloff triggered $319 million in liquidations, sent 97% of call options out-of-the-money, and pulled Ethereum and Solana down over 6%. With 90 of the top 100 assets in the red, this marks one of the most severe risk-off days since November.
Bitcoin Crashes to Two-Month Low as Market Sentiment Turns Bearish
Bitcoin’s rapid fall caught many traders off guard. The largest cryptocurrency opened at $90,315 and plunged over 6% to $83,383, erasing all of January’s recovery gains.
This drop followed a brief rally earlier in the week that took BTC near $90,400, only to reverse sharply after ETF flow data and Fed announcements. By the end of the day, BTC was trading closer to $82,463, a level not seen since mid-November.
The decline coincided with $319M in liquidations, highlighting just how leveraged and fragile the market structure had become as Bitcoin price prediction drops. Market depth also thinned, leading to outsized price swings on relatively modest volume.
Broader Market Bleeds as Ethereum and Solana Follow Bitcoin Down
The crypto pullback wasn’t limited to Bitcoin. Ethereum fell 6% to $2,942, with updated data showing a further decline to $2,723, extending the monthly loss to 8.4%. Solana dropped 6.17% to $115.34, posting its steepest one-day loss in January.
Dogecoin lost 4.5%, and even defensive assets like BNB fell by 7%. Daily trading volumes surged to $48–49 billion, suggesting that much of the movement was forced selling and stop-loss cascades.
At its low, total crypto market cap dipped to $1.69 trillion, with nearly 90% of top-100 assets posting declines, a level of broad-based weakness not seen since the FTX unwind.
Massive ETF Outflows Trigger Panic Selling Across Crypto
One of the core reasons behind today’s drawdown is the $1.13 billion in ETF outflows recorded from January 20 to 26. According to daily breakdowns, the worst day was January 22, when over $527 million exited BTC spot ETFs.
This exodus marked the sharpest 5-day withdrawal since January 2024, even for new cryptos. Institutions appeared to offload holdings aggressively as market confidence wavered. Analysts from XTB noted that ETF redemptions combined with weak BTC inflows created a perfect storm for a breakdown.
Investors Flee to Gold and Silver Amid Shift in Risk Appetite
Bitcoin’s weakness is partly explained by the growing flight to commodities. Gold surged past $5,600 per ounce, up 30% YTD, while silver hit $120, gaining 65% in January alone. In contrast, Bitcoin has fallen 33% from its October peak of $126,000.
Paul Howard, Director at Wincent, attributed this shift to a rotation into tokenized commodities, including gold, silver, and uranium. “ETF outflows, lackluster BTC performance, and new capital entering synthetic metal markets have drawn money away from crypto,” Howard said.
Fed Decision Adds to Market Uncertainty as Rate Cuts Delayed
The Federal Reserve held rates steady at 3.50–3.75% during its latest FOMC meeting, but disappointed markets by offering no clear guidance on future cuts.
Chair Jerome Powell stated that decisions would be made “meeting by meeting,” which traders interpreted as a hawkish pause. Risk assets, including crypto, reacted negatively. Bitcoin briefly rose above $90K, but quickly reversed.
As one analyst noted, “The Fed didn’t give the markets the dovish pivot they were hoping for.” With geopolitical stress, ETF outflows, and a lack of monetary easing, the market was left vulnerable to a sharp revaluation.
