NEW YORK, Jan 29, 2026, 10:07 AM EST — Market open for regular trading.
- Bitcoin dropped roughly 3.7% to $86,382 after hitting an intraday peak close to $90,260
- Crypto-related U.S. stocks dropped, with Coinbase and Strategy each sliding over 3%
- Traders noted weak inflows into spot bitcoin ETFs alongside a wider risk reset following the Fed’s rate decision
Bitcoin plunged nearly 3.7% on Thursday, slipping to around $86,382 after its brief hold above $90,000 collapsed the previous day. Market data showed the biggest cryptocurrency touched a session low near $86,382.
This shift is significant since bitcoin hasn’t caught the tailwind boosting traditional “hard assets” like gold, despite the Federal Reserve hitting pause and ongoing dollar volatility. Lately, crypto has behaved more like a high-beta risk asset, and Thursday’s decline only reinforced that trend. 1
Spot bitcoin exchange-traded funds in the U.S., which hold bitcoin outright, saw net outflows totaling roughly $19.6 million on Jan. 28, according to daily flow data from Farside Investors, a key tracker of institutional interest. 2
Crypto-related U.S. stocks tumbled with the token. Coinbase slipped roughly 3.6%, and Strategy lost around 4.4% in early trading. Miners Riot Platforms and Marathon Digital also saw declines.
Wednesday saw the Fed keep its key rate steady at 3.50%-3.75%, matching expectations, while emphasizing it will follow incoming data closely. Meanwhile, futures markets have shifted, now pricing in a rate cut around mid-year. 3
Some traders see the crypto sell-off as part of a broader repositioning after the Fed’s move, rather than a shock unique to digital assets. “For now, crypto markets appear locked in consolidation-active, but waiting for a decisive macro or technical catalyst,” said Riya Sehgal, a research analyst at Delta Exchange, in remarks reported by The Economic Times. 4
Macro cross-currents kept their roar. Gold pushed further into record territory, and oil rose amid geopolitical strains, even as the dollar hovered weak in currency markets, Reuters reported. This blend is muddying the typical “weak dollar boosts bitcoin” storyline. 1
U.S. labor data released Thursday kept the rate debate alive: initial jobless claims dipped slightly to 209,000 for the week ending Jan. 24, according to the Labor Department. 5
Crypto bulls face the risk of liquidity drying up fast once prices dip below key round numbers, which can magnify intraday swings. ETF flows also pose a threat—they can stay volatile, putting bitcoin at risk of sharp pullbacks if stocks falter or yields rise.
Traders are keeping a close eye on U.S. risk sentiment as Thursday unfolds, with the next round of major tech earnings set to drop after the close. On deck for Friday is the U.S. Producer Price Index report for December, a key inflation gauge that could sway Treasury yields. 6
