At the center of the movement, Nasdaq Crypto Index slipped around 4,495down by more than 2.3%reflecting weakness in Bitcoin, Ethereum and large-cap altcoins. Bitcoin fell near 2.7%hovering nearby $92,500while Ethereum lost about 3.6% do business nearby $3,190. XRP, Litecoinand other major tokens also recorded losses between 1.5% and 3%.
The main catalyst for this week’s volatility comes from a sudden change in the macroeconomic landscape. Geopolitical uncertainty surrounding President Donald Trump’s proposal to acquire Greenland – and the subsequent threat of tariffs against European countries – has sent shockwaves through stock and digital asset markets.
As investors turned to traditional safe havens like gold, which hit record highs above $4,600, Bitcoin saw nearly $500 million in leveraged long positions liquidated in a single hour. This flash crash has redefined the near-term outlook, as analysts expect a potential bottom between $71,000 and $84,000.
The current price development reveals a harsh reality: Bitcoin currently tracks risk assets more closely than as a hedge for “digital gold”. As the BTC/USD pair fell nearly 5.3% this month, the market saw record selloffs. Total long-term crypto liquidations surpassed $525 million following news that the United States may impose 10% tariffs on several NATO members. The move reignited trade war concerns, putting pressure not only on Bitcoin, but also Ethereum (ETH) and Solana (SOL).
Ethereum saw even steeper declines than the market leader, falling below $3,100 as it lost almost 4% of its value in 24 hours.
Market participants are becoming increasingly cautious, with the Crypto Fear & Greed Index remaining in “fear” territory. While some altcoins like XRP have shown relative resilience, trading near $1.93 with smaller downside percentages, the overall trend suggests a “wave IV” corrective structure. Technical experts warn that unless buyers step in to reclaim the $104,000 level, the market could see another decline before a significant recovery begins.
The selloff follows several range-bound trading sessions and comes amid weak liquidity, ETF outflows and growing debate over whether Bitcoin is providing a corrective base or preparing for further decline. Although long-term sentiment remains constructive, short-term signals suggest caution.
Cryptocurrency prices fall across the board as market cap drops 3%
The latest price action shows synchronized declines in large-cap cryptocurrencies. Bitcoin exchanged between $91,000 and $93,000depending on location, marking one of its weakest daily closes this month. Ethereum fell below key near-term support $3,200raising concerns about deeper consolidation.
Among other majors, Dogecoin almost fell 8% around $0.126making it the worst performing among the top 10 tokens. Solana refused about 6.7% has $133while Tron proved relatively resilient, down only 0.5% close $0.317.
The damage extended well beyond the upper level. Among the top 100 coins by market value, 10 tokens recorded double-digit losses. Aster fell suddenly 12.7%while Sui fell 12.5%. Only a handful of assets traded higher, led by Dashwho won 9%And Moneroup 6%.
Market size remains a major concern. When almost all major tokens decline simultaneously, it often signals macroeconomic sell-offs rather than asset-specific news. Traders point to ETF flows, derivatives positioning and reduced weekend liquidity as contributing factors.
Bitcoin Technical Outlook Signals Consolidation, Not Panic
Despite this sharp daily movement, analysts caution against interpreting the decline as the end of a broader bull cycle. According to market technicians, Bitcoin is currently in Wave IV of a more significant multi-year upward trend. This corrective phase typically involves unstable price action and multiple retests of support.
John Glover, chief investment officer at Lednrecently noted that the current corrective structure resembles a classic model ABC modelwith potential reduction targets of between $71,000 and $84,000 if selling pressure accelerates. It is important to note that this scenario still fits into a long-term bullish framework.
For upside confirmation, analysts watch for a decisive close above $104,000which would suggest the beginning of Wave Voften the strongest phase of a bull market. Until then, Bitcoin could continue to trade sideways or fall as buyers wait for clearer signals.
On-chain data adds nuance. The growth of the Bitcoin network has slowed and the hash rate recently hit a multi-month low, although whale sales have moderated. These mixed signals reinforce the idea of consolidation rather than capitulation.
US crypto ETFs post large outflows from Bitcoin and modest inflows from Ethereum
Institutional flows remain a major driver of short-term price action. US-listed Bitcoin exchange-traded funds ended last week with $394.68 million in net outflowsending a recent influx streak. Total cumulative net inflows fell below $58 billionsettling nearby $57.82 billion.
Out of twelve Bitcoin ETFs, only one recorded positive flows. black rock carried out with inflows of approximately $15 millionwhile Grayscale experienced the largest releases at over $205 millionfollowed by Bitwise at approx. 90 million dollars.
Ethereum ETFs painted a more stable picture. On January 16, the US spot Ether ETFs were released collectively $4.64 million in revenuemarking their fifth consecutive day of net positives. Total net inflows remained stable around $12.9 billionwith BlackRock again leading the way higher and Grayscale seeing modest buybacks.
The divergence suggests that investors are selectively reallocating rather than completely abandoning crypto exposure, favoring the growth of Ethereum’s ecosystem and highlighting Bitcoin’s short-term volatility.
Adoption headlines contrast with near-term market weakness
Even as prices decline, adoption and institutional interest continue to grow. Mortgage lender Newrez announced plans to allow eligible borrowers to include Bitcoin, Ethereum and select stablecoins as assets in its mortgage underwriting process. The policy, expected to roll out in February, will apply to all non-agency products, including home purchases and refinances, without requiring borrowers to liquidate their crypto holdings.
In the business sector, reports indicate Digital Anchorage is studying a financing round of up to 400 million dollars ahead of a possible IPO, signaling continued confidence in regulated crypto infrastructure. In the meantime, Steak and shake disclosed a Buying Bitcoin for $10 million for its treasury, adding to the growing list of companies using crypto as a balance sheet asset.
These developments highlight the persistent disconnect between short-term price developments and long-term adoption trends. Although sentiment remains cautious and further declines cannot be ruled out, structural support for digital assets continues to strengthen beneath the surface.
