Why Is Cryptocurrency Declining Today? – January 21, 2026

The cryptocurrency market has experienced another decline today. Over the last 24 hours, the market capitalization of cryptocurrencies has fallen by 2.4%, bringing it down to $3.1 trillion. As of this writing, 92 out of the top 100 coins have registered price declines. The overall trading volume for crypto stands at $152 billion.

TLDR:

The crypto market capitalization has decreased by 2.4% as of Wednesday morning (UTC);

All top 10 coins and 92 of the leading 100 coins are in the red;

BTC has dropped by 2.2% to $89,104, while ETH has fallen by 5% to $2,965;

The market outlook is moderately bearish through mid-year;

Traders are willing to pay extra for downside protection;

Macro risks are rapidly accumulating;

The crypto markets now seem more risk-averse compared to previous cycles;

There is a 30% likelihood that BTC will dip below $80,000 by June 26;

SkyBridge Capital is increasingly focusing on macro trades as the policy uncertainty under the US president heightens market volatility;

Delaware Life has incorporated the BlackRock US Equity Bitcoin Balanced Risk 12% Index into its fixed indexed annuity portfolio;

US crypto spot ETFs reopened this week, experiencing significant outflows;

Market sentiment in crypto has plummeted, entering the fear zone once again.

Crypto Winners & Losers

As of Wednesday morning (UTC), all top 10 coins ranked by market capitalization have faced a price drop in the past 24 hours.

Bitcoin (BTC) has decreased by 2.2%, now trading at below $90,000, specifically at $89,104.

Bitcoin (BTC)24h7d30d1yAll time

Ethereum (ETH) has fallen by 5%, trading below $3,000 at $2,965, marking the largest decrease in this category.

Lido Staked Ether (STETH) follows closely, also down by 5% to $2,965, trailed by Binance Coin (BNB), which saw a 4.7% decline to $874.

The least affected during this period appears to be Dogecoin (DOGE), which has dropped 1.8%, currently priced at $0.1248.

Among the top 100 coins by market capitalization, 92 are experiencing losses today. Of the eight coins that are in the green, Provenance Blockchain (HASH) stands out as the top performer, gaining 4.9% to $0.02724.

Canton (CC) follows, with a 4.4% increase to $0.1326.

Conversely, Monero (XMR) has recorded a significant drop of 15.2%, currently trading at $492.

This is followed by Hyperliquid (HYPE), which has decreased by 8.2% to $21.27.

The remaining coins are down by 5.4% or less each.

Meanwhile, alternative asset manager SkyBridge Capital is intensifying its focus on macro trades, as the rising policy uncertainty under US President Donald Trump contributes to increased market volatility. “Due to the volatility, macro traders have performed better,” stated founder Anthony Scaramucci.

“This situation is more about timing than direction. I don’t believe the fundamental narrative for Bitcoin has altered. In fact, we’ve witnessed considerable consolidation,” he added.

SkyBridge is focusing on macro trades amidst policy-driven volatility while remaining cautious about regulations and optimistic about Bitcoin’s long-term prospects, according to Anthony @Scaramucci. #Scaramucci #SkyBridge https://t.co/rirukb9ehU

— Cryptonews.com (@cryptonews) January 21, 2026

Calm On Surface, But Turmoil Rising Underneath

Sean Dawson, Head of Research at the on-chain options platform Derive.xyz, remarked that any apparent market tranquility is unlikely to persist. Despite a calm exterior, macro risks are escalating.

We observe growing geopolitical tensions between the U.S. and Europe, especially concerning Greenland. These developments raise “the risk of a shift back into a higher-volatility environment, a dynamic not currently mirrored in spot prices,” Dawson explains.

“In the context of ongoing geopolitical uncertainty, crypto markets seem more risk-averse compared to prior cycles, despite historically low realized volatility.”

When analyzing options, “the outlook remains moderately bearish through mid-year.” BTC’s 25-delta skew has significantly worsened, dropping from +5% last year to -3%. This indicates that traders are willing to pay more for downside protection.

This ongoing skew suggests that markets are increasingly positioned for weakness in the first half of the year, Dawson notes.

Volatility looks poised for a breakout; 30 and 90-day at-the-money implied volatility has been crushed to two monthly lows at 38%.
The tensions in Greenland, the potential war in Iran, and a K-shaped economy all contribute to making this appear undervalued. pic.twitter.com/86P2ZgIUxx

— Sean | Derive (@SeanNotShorn) January 20, 2026

Furthermore, he argues that this viewpoint is supported by positioning. Observing the BTC expiry on June 26, he finds a considerable concentration of put open interest across the $75,000-$85,000 strikes. This indicates “expectations of a decline into the mid-70s to low-80s before the second half of the year.”

Moreover, the options markets exhibit a clear downside skew. There is currently a 30% probability that BTC will drop below $80,000 by June 26, compared to a 19% chance it will surge above $120,000 during the same timeframe.

“These expectations align with trends established since the flash crash on October 10. Although markets have stabilized somewhat since then, BTC’s recovery above $90,000 has been sluggish, and confidence remains tenuous,” Dawson concludes.

Levels & Events to Watch Next

As of Wednesday morning, BTC was trading at $89,104. The coin began the day with an intraday high of $91,320, but soon fell below the $90,000 mark, reaching an intraday low of $87,901.

Additionally, it has seen a significant decline over the course of the week, dropping 6.2% and trading within the $88,312–$97,538 range.

Given that BTC recently reached the $87,900 level, the price may revisit the zones of $86,200 and $85,000, potentially leading to the $79,000 level.

Bitcoin Price Chart. Source: TradingView

Meanwhile, Ethereum was trading at $2,965, having seen an intraday high of $3,120 earlier in the day. It then swiftly declined to the day’s low of $2,924 and has remained below the $3,000 threshold since.

Although ETH typically outperforms BTC on a weekly basis, it has now recorded a larger drop of 10.9%. The price has fluctuated between $2,935 and $3,379.

After falling below $3,000, ETH may continue its descent towards $2,890, followed by $2,800 and $2,760. Further declines are likely if the market doesn’t show signs of improvement soon.

Ethereum (ETH)24h7d30d1yAll time

In the meantime, crypto market sentiment has experienced a notable decline over the past day.

The crypto fear and greed index has dropped from 45 yesterday to 32 today, moving it out of the neutral zone and into the fear zone.

This metric clearly indicates a growing sense of caution, fear, and uncertainty among market participants, driven by the deteriorating macroeconomic and geopolitical conditions.

ETFs Markets Return Red

Traditional markets were closed in the US on Monday and reopened on Tuesday, providing fresh updates for US crypto spot exchange-traded funds (ETFs).

On January 20, US BTC spot ETFs concluded the first session of the week with negative flows of $483.38 million. The total net inflow has retreated to $57.34 billion.

Among the twelve ETFs, eight experienced outflows, with none recording inflows. The highest outflow was recorded by Grayscale at $160.84 million.

Fidelity follows with outflows of $151.13 million, trailed by BlackRock, which had outflows of $56.87 million.

Additionally, US ETH ETFs ended their recent streak of gains on Tuesday, posting outflows of $229.95 million. Consequently, the total net inflow diminished to $12.68 billion.

Out of nine funds, six ETH ETFs reported outflows, with none seeing inflows. BlackRock topped the list with negative flows of $92.3 million.

In second place, Fidelity recorded outflows of $51.54 million.

Meanwhile, Delaware Life has included the BlackRock US Equity Bitcoin Balanced Risk 12% Index in its fixed indexed annuity portfolio, marking the first occasion an insurance entity has offered an index featuring crypto.

“As we adapt to the evolving retirement-planning landscape, we are consistently and thoughtfully innovating to serve the needs of financial professionals and their clients,” stated Colin Lake, president and CEO of Delaware Life Marketing. “Our fixed index annuities provide what today’s investors seek: growth opportunities paired with protection.”

Delaware Life Insurance Company, a subsidiary of Group 1001, announced the inclusion of the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index to its fixed indexed annuity (FIA) offerings, becoming the first U.S. insurer to introduce bitcoin exposure within this…

— Wu Blockchain (@WuBlockchain) January 20, 2026

Quick FAQ

1. Did crypto move with stocks today?

The cryptocurrency market has seen another decline in the past 24 hours. Additionally, the US stock market closed sharply lower on Tuesday. By the end of the session on January 20, the S&P 500 was down 2.06%, the Nasdaq-100 dropped by 2.12%, and the Dow Jones Industrial Average fell by 1.76%. This drop followed the US president’s renewed threats to impose new tariffs on eight NATO allies for opposing his Greenland ambitions.

1. Is this drop sustainable?

At present, further declines are probable. The markets are generally under pressure due to geopolitical tensions and economic strain. In the long run, analysts suggest that another upward movement may still occur.

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