Why Is Crypto Down Today? – January 7, 2026

The crypto market is down today, with the cryptocurrency market capitalisation falling by 1.6% to $3.24 trillion. Currently, 65 of the top 100 coins have dropped over the past 24 hours. At the same time, the total crypto trading volume stands at $150 billion.

Crypto Winners & Losers

At the time of writing on Wednesday morning, 9 of the top 10 coins per market capitalisation have seen their prices go down over the past 24 hours.

Bitcoin (BTC) is down by 1.9% since this time yesterday, currently trading at $91,799.

Ethereum (ETH) fell by 0.5%, now changing hands at $3,211.

The category’s biggest drop at the time of writing is 4.7% by XRP, currently standing at $2.25.

It’s followed by BTC’s 1.9%, and then Dogecoin (DOGE)’s 1.6% to the price of $0.1483.

Tron (TRX) often goes against the flow, and it does so today as well. It is the only green coin, having appreciated 1.1% and trading at $0.2944.

Among the top 100 coins, 65 recorded drops. Provenance Blockchain (HASH) is the only one with a double-digit red percentage. It’s down by 10.3% to $0.02686.

Mantle (MNT) is next, with a drop of 5.9%, changing hands at $1.05.

As for the green coins, Hyperliquid (HYPE) and MemeCore (M) are up 3.4% and 3.2% to $27.42 and $1.68, respectively.

The rest on this short list appreciated 1.1% and less per coin.

Meanwhile, the U.S. Department of Justice (DOJ) has liquidated 57 BTC forfeited by Samourai Wallet developers through Coinbase Prime on 3 November 2025.

Senator Cynthia Lummis has criticised this move, saying the United States “can’t afford to squander these strategic assets while other nations are accumulating bitcoin. I’m deeply concerned about this report,” she added.

‘Dovish US Fed Remarks’

On Tuesday, the US Federal Reserve Governor Stephen Miran said that the current interest rate policy is “clearly restrictive.” There is justification for rate cuts “well in excess of 100 basis points” in 2026, he added.

According to Bitunix analysts, “the remarks are distinctly dovish and stand in sharp contrast to views held by some officials who believe policy is already near neutral, underscoring widening internal divergence within the Federal Reserve over the economic outlook and the appropriate policy stance.”

They argue that,

“The issue at hand is not a single official’s remarks, but the convergence of policy divergence with pivotal data releases. The direction of employment data will determine whether markets move toward a ‘rate pause’ narrative or begin to front-run deeper and earlier easing. For the crypto market, the core focus remains whether liquidity expectations undergo a substantive turning point.”

Meanwhile, Fabian Dori, CIO at Sygnum, commented on the recent renewed ETF demand, arguing that it is “increasingly relevant for market structure.”

ETF demand is steadily absorbing circulating supply, Dori says. This suggests a potential long-term demand shock, rather than short-term speculative flows.

Moreover, recent regulatory developments “are reinforcing structurally higher participation from institutional allocators rather than tactical inflows.” These include lower barriers to launching crypto ETFs.

Per Dori, this shift is part of the broader “debasement trade,” with institutions increasingly reallocating into scarce, non-dilutive assets like Bitcoin. Additionally, major US banks, including Bank of America and Morgan Stanley, expand access to spot Bitcoin ETFs amid rising sovereign debt and persistent inflation uncertainty, an email says.

Levels & Events to Watch Next

At the time of writing on Wednesday morning, BTC stood at $91,799. It’s been quite a choppy trading day for the coin.

It initially plunged from the intraday high of $94,343 to the low of $91,544. It recovered to the $93,600 level before falling nearly to the intraday low again.

Should the coin hold the $91,000 level, it may soon see another leg up towards $94,000 and $96,000. But if BTC falls below $90,000, it could be dragged back to the $85,000 level.

Ethereum is currently changing hands at $3,211. It too saw several larger recoveries and falls over the past 24 hours.

It climbed several times towards the intraday high of $3,300 before falling towards the intraday low of $3,196.

ETH could be on the way to the sub-$3,100 levels, followed by a pullback towards $2,900. Yet, if it holds, it may continue the recent push upwards towards $3,600 and $3,800.

Meanwhile, the crypto market sentiment has stayed unmoved for the past two days, still holding firm in neutral territory.

The crypto fear and greed index stands at 49 today, the same as yesterday. Some optimism remains, but caution is rising.

Notably, the metric has been out of the fear zone for just a week now, since the beginning of this year, so it will be interesting to see in which direction it will move following this latest pause.

BTC ETFs Go Red, ETH ETFs Hold Green Streak

After a couple of days of increases, the US BTC spot exchange-traded funds (ETFs) recorded negative flows. On Tuesday, these let go of $243.24 million in total. With this, the total net inflow pulled back to $57.54 billion.

One of the twelve BTC ETFs saw inflows, and five saw outflows. BlackRock posted the only inflow amount of $228.66 million.

The highest outflow is Fidelity’s $312.24 million, followed by Grayscale’s $115.8 million.

However, the US ETH ETFs posted another day of positive flows on 6 January, for a third day in a row, with $114.74 million. The total net inflow increased slightly to $12.79 billion.

Of the nine funds, three recorded inflows, and three posted outflows. BlackRock took in $198.8 million in inflows. It’s followed by 21Shares and Bitwise with $1.62 million and $1.39 million, respectively.

On the other side, Grayscale let go of $85.45 million in total on Tuesday, followed by Fidelity’s $1.62 million.

Meanwhile, index provider MSCI plans to exclude the so-called digital asset treasury companies from its equity indexes.

“Distinguishing between investment companies and other companies that hold non-operating assets, such as digital assets, as part of their core operations rather than for investment purposes requires further research and consultation with market participants,” MSCI said.

Quick FAQ

The crypto market posted a loss over the past 24 hours. Meanwhile, the US stock market continued a green streak, closing the Tuesday session sharply higher. By the closing time on Tuesday, 6 January, the S&P 500 was up 0.62%, the Nasdaq-100 increased by 0.94%, and the Dow Jones Industrial Average rose by 0.99%.

This is a smaller decrease, and the market can move in either direction from this point. While analysts argue that there is still room for prices to expand higher, the direction may depend on the near-term macroeconomic factors.

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