The cryptocurrency market is experiencing a noticeable decline today, Thursday, January 29, 2026, and there are several intertwined main reasons behind this drop based on the latest economic analyses:
1. The decision of the American Federal Reserve (The Fed)
The main reason is the state of "caution" that has dominated the markets after the decision of the American central bank to keep interest rates unchanged.
* Although the stabilization was expected, Jerome Powell's statements did not provide strong or clear signals about the timing of the next interest rate cut (monetary easing).
* The absence of monetary easing signals has disappointed investors who were hoping for greater liquidity to support high-risk assets like crypto.
2. Weak institutional flows (ETF Outflows)
Spot Bitcoin ETFs have seen weak or negative flows over the past two days.
* Funds recorded outflows estimated at around 150 million dollars recently.
* This indicates a decline in major institutions' appetite for buying at current price levels, placing selling pressure on the market.
3. Profit Taking
After Bitcoin touched the 90,000 dollar mark earlier this week, many traders preferred to sell their holdings for quick profits rather than holding them, creating a wave of selling that pushed the price down towards the 88,000 dollar level.
4. Liquidations in the derivatives market
Data indicates selling pressures in the futures market, especially on alternative currencies.
* Currencies like Solana ( $SOL ) and xrp and Cardano (ADA) experienced sharp declines exceeding 6% on some platforms as a result of the liquidation of long positions after the market failed to break resistance barriers.
Market performance summary today:
* Bitcoin ( $BTC ): is trading defensively around the 88,000 dollar area, after failing to break through the 90,000 - 91,000 dollar barrier.
* Ethereum ( $ETH ): dropped to trade below the 3,000 dollar level (around 2,955 dollars).
* Alternative currencies (Altcoins): are the most affected today, recording larger losses compared to Bitcoin.
Summary: The market is currently in a phase of "Wait and Caution" (Consolidation). Investors are awaiting a new economic catalyst or an attractive price drop to return to strong buying.btc
