NEW YORK, Jan 29, 2026, 13:43 ET — Regular session
Bitcoin dropped 5.6% to $84,487 Thursday, breaking through price points traders had held firm on most of the week as selling intensified in U.S. trading hours. It dipped to $84,038, down from a close just shy of $89,500, according to data. 1
The drop is significant as bitcoin struggles to establish a floor following the Federal Reserve’s signal that it won’t rush to cut rates again. This stance keeps real-world yields elevated and the dollar firm. That combination squeezes assets dependent on liquidity, like crypto. 2
Flows weighed on the market. U.S.-listed spot bitcoin ETFs—funds that allow investors to gain bitcoin exposure through a brokerage account—saw net outflows of $147.4 million on Jan. 27, followed by $19.6 million on Jan. 28, data from Farside Investors show. 3
Broader markets also showed signs of nerves. Global stocks dipped following a steep drop in Microsoft’s shares on disappointing results. Meanwhile, oil prices surged amid concerns over a potential escalation involving Iran. This mix sent investors scrambling toward safer assets, leaving risk appetite on shaky ground. 4
“Crypto markets appear locked in consolidation” and are “waiting for a decisive macro … catalyst,” said Riya Sehgal, a research analyst at Delta Exchange, in a note highlighted by The Economic Times Thursday morning, just before bitcoin slipped lower. 5
In Washington, lawmakers pushed ahead with a new crypto market-structure bill. The Senate Agriculture Committee approved legislation granting the Commodity Futures Trading Commission oversight of spot crypto markets. However, the bill faces significant hurdles before reaching a full Senate vote. 6
The White House plans to bring banking and crypto executives together on Feb. 2, aiming to resolve disputes over whether crypto firms should be allowed to pay yield on stablecoins—dollar-pegged tokens, Reuters reported. Summer Mersinger, CEO of the Blockchain Association, said the group was “proud to participate.” 7
Gold’s recent surge has complicated bitcoin’s claim as “digital gold.” Tether CEO Paolo Ardoino told Reuters the stablecoin company intends to put 10% of its portfolio into bitcoin and between 10% to 15% into physical gold. He added, “The world is not in a happy place at this moment.” 8
The selloff hasn’t been nonstop. Bitcoin is still liable to sudden intraday swings, and a shift in ETF flows or weaker U.S. inflation numbers could lure dip-buyers back fast — the same leverage driving the drops can fuel a sharp rebound.
Traders are keeping an eye on whether bitcoin stays above today’s low and if ETF inflows bounce back after two straight days of net outflows. The next key macro event is the U.S. producer price index for December, set for release Friday at 8:30 a.m. ET. 9
