Crypto prices today fell sharply, with Bitcoin sliding below key support levels as heavy liquidations rippled across derivatives markets.
Summary
- Bitcoin and major altcoins moved lower amid heavy liquidations.
- Derivatives data points to leverage being flushed from the market.
- Sentiment dropped into extreme fear as risk-off pressure built amid macro pressures.
The total crypto market cap dropped about 5% to $2.9 trillion. Bitcoin fell 5.8% over the past 24 hours to trade at $88,887 at press time, while major altcoins moved lower in tandem. Solana slid 6% to $115, Zcash dropped 8% to $33.7, and Sui fell 4.2% to $1.30.
Selling picked up sharply as prices fell. CoinGlass data showed more than $1.6 billion in positions were wiped out over the past 24 hours, a 384% increase, while total open interest slid 4.6% to $126 billion. These figures suggest that traders were cutting leverage rather than dumping spot holdings.
Market momentum also weakened, with the average relative strength index dropping into the mid-30s. Sentiment followed price lower. The Crypto Fear & Greed Index fell 10 points to 16, placing the market deep in extreme fear.
Macro pressure and leverage unwinds drive broad sell-off
The pullback does not trace back to a single trigger. Rather, it shows a mix of shifting positioning and macro pressure. The first Federal Reserve first policy decision of 2026, which kept rates at 3.50%–3.75% but provided little assurance on short-term easing, shook the markets.
Powell’s focus on persistent inflation and steady economic growth cooled expectations for further rate reductions. That pressure has spilled across markets. While capital has rotated to safe haven assets like gold and silver, crypto has traded in closer sync with equities, particularly technology stocks.
At the same time, U.S.-listed spot exchange-traded funds have posted consecutive days of net outflows, removing a key source of demand that supported prices through late 2025.
Leverage amplified the impact of the move. Forced liquidations and stop-loss triggers sped up forced selling as the price slipped through technical levels, turning an orderly pullback into a sharper cascade.
Geopolitical risks have added to the caution. Renewed tensions in the Middle East, rising discussion around U.S. government shutdown risk, and uncertainty around future regulatory direction have all contributed to a risk-off tone, even if they were not direct catalysts.
Short-term outlook and analyst views
Analysts remain divided on the near-term outlook but broadly agree that market conditions are fragile. Several market watchers view the $84,000 area as a key level for Bitcoin, warning that a failure to hold could expose prior support near $80,000, with deeper downside toward the mid-$70,000s possible.
Trader Daan Crypto Trades noted on X that Bitcoin is approaching its weekly 200-day moving averages, levels that have historically attracted long-term buyers. He added that those averages continue to rise, meaning price could converge with them even if it trades sideways in the weeks ahead.
CryptoQuant contributor XWIN Research Japan described the move as a market-wide stress test driven by overlapping shocks. The firm said Bitcoin is transitioning from the later stage of an uptrend into a corrective phase, with short-term price action becoming increasingly flow-driven.
According to the analysis, renewed U.S. shutdown risk has weighed on sentiment more than in recent years, in part because the prolonged shutdown in October 2025 left a lasting imprint on market behavior.
On-chain data, including a drop in the Coinbase Premium Index, points to selling pressure led by U.S.-based investors rather than a synchronized global exit.
For now, analysts see a correction shaped by macro uncertainty and leverage cleanup as the base case. A stabilization in U.S.-led flows or easing political risk could shift that outlook, but until then, volatility is likely to stay elevated.
Source: https://crypto.news/crypto-prices-today-january-29-btc-sol-zec-sui-2026/
