Bitcoin Plummets to $84,000 Amid Broader Market Selloff
By John Nada·Jan 29, 2026·3 min read
Bitcoin's sharp drop to $84,000 reflects broader market selloff pressures. Key support levels are critical as traders navigate a risk-off sentiment.
Bitcoin plunged to $84,000 during U.S. morning hours on January 29, 2026, alongside rapid declines in stocks and precious metals. While other assets have bounced back from their lows, cryptocurrencies like Bitcoin, Ethereum, XRP, and Solana remain under pressure, down 5%-7% over the past 24 hours. Joshua Lim, global co-head of markets at FalconX, highlighted that weak earnings results and geopolitical concerns are driving a broad selloff, impacting both traditional markets and cryptocurrencies. This selloff resulted in over $650 million in liquidations of bullish leveraged positions across all crypto assets, marking one of the most severe flushes in recent weeks, according to data from CoinGlass.
Funding rates for perpetual swap contracts have turned bearish for major tokens, indicating a shift in market sentiment. When funding rates go negative, it typically signals that short sellers are paying long holders, suggesting that traders are leaning bearish. Historically, persistent negative funding rates have often signaled imminent short-term price reversals.
Key levels to monitor include an aggregate cost basis for U.S. spot Bitcoin ETF buyers near $84,099, just below the current price. The True Market Mean Price, a long-term fair value metric, is slightly above $80,000, which aligns closely with Bitcoin's November 2025 low. If Bitcoin breaks below $80,000, it may retest levels around $76,000, last seen during a selloff triggered by President Donald Trump’s tariff policies.
January is shaping up to be particularly challenging for Bitcoin, on track for its fourth consecutive monthly loss, a notable streak considering Bitcoin didn’t experience similar declines even during the depths of the 2022 crypto winter. Mark Connors, chief investment officer at Risk Dimensions, pointed out that the current equity market dynamics, particularly the AI infrastructure trade, have overshadowed Bitcoin's performance. He suggested that Bitcoin may struggle to regain momentum until there’s a significant economic signal from the U.S.
The broader implications of this selloff extend beyond just Bitcoin. It reflects a growing risk-off sentiment across financial markets. With traders becoming increasingly cautious, the uncertainty in equity markets and the ongoing geopolitical tensions could continue to weigh on crypto prices. Bitcoin’s ability to find support at these critical levels will determine not just its short-term trajectory but also its long-term viability in an increasingly competitive market.
In summary, Bitcoin's sharp decline highlights the interconnectedness of crypto and traditional financial markets. As traders digest these developments, the focus will remain on key price levels that could signal a shift in sentiment moving forward.