Bitcoin's New Year rally is over: BTC USD price today falls below $90,000 as crypto liquidations surge

Bitcoin price USD today: The excitement that carried Bitcoin into the new year has evaporated soon, as the world’s largest cryptocurrency continues a steady slide that has erased most of its early 2026 gains.

Bitcoin Price (BTC USD) Today Falls Below $90,000 as Crypto Market Slides

Bitcoin dropped 2.4% over the past 24 hours to $89,881, and the broader crypto market moved lower alongside it, with total market capitalization falling 2.6% after hitting $3.305 trillion just a day earlier, as per a report.

Crypto Market Down Today: $477 Million in Liquidations Hit Bullish Crypto Traders

The downturn has taken a heavy toll on traders who were betting on further gains. CoinGlass data shows that more than $477 million in crypto positions were liquidated over the past 24 hours, with bullish traders absorbing the vast majority of the losses, as per a Decrypt report. Long positions accounted for more than 90% of total liquidations, highlighting how quickly sentiment has shifted.


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Ethereum, XRP, and Meme Coins Extend Losses

The sell-off spread across major cryptocurrencies. Ethereum fell 3.9%, while XRP slid 7.6%. Meme coins that surged during the first week of the year also reversed sharply, with Pepe down 6.6% and Bonk falling 8% after nearly doubling earlier in 2026.

BTC USD Price Crash Today: Analysts Say Bitcoin’s Early-Year Boost Has Faded

Analysts say Bitcoin’s dip below the $90,000 mark signals that the momentum from the early-year rally has faded. Illia Otychenko, lead analyst at CEX.IO, pointed out that, “Bitcoin’s move below $90,000 reflects fading momentum from the early-year boost,” adding, “Fresh allocations at the start of 2026 and supportive geopolitical headlines helped initially, but they were not strong enough to sustain a rally,” as quoted by Decrypt.

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Why is Bitcoin Price USD Down Today

Wenny Cai, chief operating officer at SynFutures, explained that, “Despite a strong start to 2026 and positive structural developments... Bitcoin has struggled to sustain a move above the $90,000 level—and there are several drivers behind this price movement,” as quoted by Decrypt.

US Jobs Data Looms as Key Catalyst for Bitcoin

She pointed to a combination of pressures holding Bitcoin back, like broader risk-off sentiment in global markets, driven by investors waiting for key macroeconomic data, such as US jobs reports, has kept risk appetite subdued. Cai said, “This risk-off behavior has been reflected in Bitcoin’s trading ranges near the low-$90Ks and occasional dips below $90K,” as quoted by Decrypt.

Spot Bitcoin ETF Outflows Add Selling Pressure

Additional pressure has come from renewed outflows in spot Bitcoin exchange-traded funds. Otychenko highlighted $243 million in outflows from US Bitcoin ETFs, while Cai noted that although ETF flows are a long-term positive for crypto markets, they have recently acted as a short-term headwind by reducing buying pressure, as per the Decrypt report.

Thin Market Liquidity Amplifies Crypto Volatility

Thin market liquidity is also amplifying price moves. Otychenko said limited liquidity has resulted in choppy trading conditions, while suggesting that sentiment could improve if Bitcoin finds support following the release of upcoming US jobs data. Cai echoed that view, noting that liquidity is thinner than in previous bull markets, which can exaggerate declines even when underlying demand remains intact.

FAQs

Why is Bitcoin falling at the start of 2026?
Bitcoin has slipped as early-year momentum faded, risk-off sentiment grew, and buying pressure weakened.

How much did Bitcoin drop recently?
Bitcoin fell 2.4% in 24 hours and is trading below $90,000.