DeutschThe crypto market is experiencing a turbulent evening. Bitcoin (BTC) has fallen significantly below the $88,000 mark (approx. CHF 76,500) within a few hours. While traders are looking for the causes, signs of a larger correction before the end of the month are increasing. What’s behind the sudden sell-off?
After Bitcoin had laboriously worked its way towards the $90,000 mark last week, disillusionment followed promptly. In a classic “Sunday correction,” the leading digital currency lost over 2.5% in value at its peak. Bitcoin is currently trading at around $87,600, which noticeably increases nervousness in the market.
Root Cause Analysis: Geopolitics and Interest Rate Fears
Today’s pullback didn’t come out of nowhere. Market observers attribute the selling pressure to a combination of macroeconomic uncertainties and geopolitical tensions:
Tariff threats and trade conflicts: New reports of escalating trade tensions – especially threats from the US regarding 100 percent tariffs on Canadian goods and ongoing friction with the EU – are currently weighing on all risk assets. Bitcoin, often hailed as “digital gold,” paradoxically often reacts first in such moments with a retreat to safer havens (risk-off).
The shadows of the Fed meeting: The US Federal Reserve will meet next Tuesday and Wednesday (January 27/28). The uncertainty as to whether interest rates will remain stable in view of the volatile global situation or whether more restrictive tones will be struck is causing institutional investors to reduce positions in order to secure liquidity.
Massive Liquidations: The rapid price slump triggered a chain reaction on the derivatives markets. According to data from CoinGlass, crypto positions worth over $130 million have been forcibly liquidated in the last 24 hours. The majority of this was attributable to long positions, which technically accelerated the downward trend.
- Bitcoin
(BTC) - Price $86,851.00
- Market Cap
$1.74 T
Technical Analysis: Important Support Zones in Sight
From a technical perspective, Bitcoin is now in a critical zone. The $88,000 mark, which has served as a psychological anchor in recent days, has been broken.
- First Support: The next significant support lies in the range of $85,500 to $86,000. Should Bitcoin not find a bottom here, a quick test of the $82,000 mark could follow.
- Resistance: On the upside, the $90,000 mark now acts as a massive lid. Only a daily closing price above $91,500 would reactivate the bullish momentum for February.
Analysts also point to the “Window of Opportunity” that many experts see until January 31. If a turnaround is not achieved by then, February is historically likely to be a difficult month for crypto investors.
Altcoins Suffer More: ETH and SOL in Tow
As so often, the Bitcoin cold hits the altcoins with a severe flu. Ethereum (ETH) temporarily fell below the psychologically important mark of $2,900, while Solana (SOL) is struggling with a minus of over 3%.
The high liquidation risk for leveraged altcoin positions is particularly noticeable. Many retail investors had bet on rising prices at the end of January in anticipation of an “Altseason” and are now being flushed out of the market. For long-term investors, however, this “wash-out” often offers more favorable entry points, provided that fundamental confidence in the projects remains.
Outlook: The Calm Before the Storm?
Despite today’s pullback, institutional interest – as the latest news on UBS and the BitGo IPO show – remains unbroken. The current dip is seen by many “whales” (large investors) more as a necessary cleansing of the overheated market.
What investors should pay attention to in the coming week:
Volatility on Tuesday: With the start of the Fed meeting, violent price fluctuations are to be expected.
Month-end closing price: Where Bitcoin stands at midnight on January 31 will set the direction for the entire first quarter of 2026.
Conclusion: Today’s price slump is painful, but not unusual in the current market environment. Bitcoin is struggling with the reality of traditional financial markets. For Swiss investors, this means above all: keep calm and closely monitor the supports at 85k USD.
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