Bitcoin rebounded above $88,000 after the biggest realized loss event since 2022.
Ethereum, Solana, and XRP went up more than 4% at press time.
Japan’s plan to approve crypto ETFs by 2028 boosted long-term market optimism.
Crypto prices today showed signs of recovery. Bitcoin price rebounded above $88,000 at press time. Ethereum and other major cryptocurrencies followed suit, showing the broader market uptrend. The global crypto market cap climbed back to $3 trillion, up 1.71%, after slipping to $2.99 trillion in the early morning hours of Jan 27. Favourable technical signs and regulatory policy boosted investor sentiment. Here’s everything that happened in the crypto market today based on CoinMarketCap data.
Bitcoin price climbed 2.40% to $88,485.82. Earlier, Bitcoin was trading above $120,000 before a sharp decline to $90,000 that triggered over $4.5 billion in realized losses. The largest capitulation event since the 2022 bear market.
The world's largest cryptocurrency maintained a market cap of $1.76 trillion with trading volume of $45.98 billion in the past 24 hours.
CoinSwitch Markets Desk noted, “BTC climbed toward $88,000 as selling pressure eased following a recent pullback, supported by short-term dip buying. Price action remains choppy, reflecting cautious positioning due to ongoing macro uncertainty.
CoinSwitch analysts further explained, “Concerns surrounding a potential US government shutdown continue to weigh on broader risk sentiment, limiting aggressive upside participation. Until BTC decisively breaks and sustains above the $89,000 level, upside moves are likely to remain corrective and range-bound rather than signaling the start of a sustained uptrend.”
Ethereum price led the altcoin recovery. The coin was up 4.89% at $2,939.81. Solana price jumped 4.36% to $124.19, XRP gained 4.31% to trade at $1.90. BNB soared 1.88% to $879.41 with a market cap of $119.9 billion. Cardano (ADA) rose 4.39% to $0.3530; meanwhile, Dogecoin (DOGE) increased 2.64% to $0.1223. TRON (TRX) also surged 0.50% to $0.2966.
Stablecoins USDT and USDC held their pegs at $0.9988 and $0.9996, respectively. Analysts, however, noted a concerning $7 billion decline in the Ethereum-based stablecoin market cap over the past week.
Also Read: Bitcoin News Today: Strategy Lifts Holdings to 712,647 BTC as Crypto Volatility Sparks $750M Liquidations
Here are the top headlines impacting crypto prices today.
Washington's winter storm forced the US Senate Agriculture Committee to postpone Jan 27’s scheduled markup of the Digital Commodity Intermediaries Act. The delay affects what would have been the first formal Senate vote on comprehensive crypto market structure legislation.
The postponement adds to ongoing regulatory uncertainty. The Senate Banking Committee has already pushed its parallel CLARITY Act into late February or March. However, President Trump recently stated he expects to sign a crypto market structure bill ‘very soon.’ This could offer much-needed clarity for institutional investors once weather conditions improve and voting resumes.
Japan's Financial Services Agency announced plans to approve the country's first cryptocurrency ETFs by 2028. Major financial players, including Nomura Holdings and SBI Holdings, are preparing to launch these products. Analysts estimate that these crypto ETFs could attract up to $6.4 billion in assets.
This is a huge step for a country that previously maintained a conservative stance on crypto following high-profile exchange hacks. The Financial Instruments and Exchange Act plans to reclassify cryptocurrencies. This may align crypto tax treatment with traditional equities, currently taxed at 20% instead of the current 55% rate on crypto gains.
Despite today's price recovery, US-based Bitcoin ETFs recorded $1.33 billion in net outflows over the past week. This is the largest withdrawal since February 2025. This capital flight reflected weakening institutional confidence in the near term. However, crypto prices today suggested that retail buyers may be stepping in at lower levels.
The Ethereum-based stablecoin market cap dropped from $162 billion to $155 billion in seven days. This means that investors are exiting crypto for precious metals and equity markets amid trade war tensions and geopolitical upheaval. Analysts warn that this liquidity migration could pressure prices if the trend continues.
Bitcoin currently trades below its 9-week moving average after failing to reclaim the $100,000 level. The $80,000 support zone is important. Analysts view this as a make-or-break zone for the market. Holding above the $80,000 level keeps the broader market structure corrective rather than bearish. A breakdown below it could trigger further losses toward $70,000. At the same time, reclaiming $100,000 would invalidate bearish scenarios.
Also Read: Bitcoin Profit Cools as Gold Holds Near Record Highs: What Investors Should Note
You must be wondering then that, given the global uncertainty like the US crypto bill delays, why is the crypto market still up today? The gains appear driven by technical bounce buying at support levels combined with optimism around potential regulatory clarity. However, investors should watch the $80,000 Bitcoin support closely. If BTC stays above the support level, then crypto prices today may continue to rise in the short term.
1. Why did crypto go up today?
Today, crypto prices increased due to an influx of buyers following large sell-offs from BTC – particularly at the $80,000 level. The hike came on the positive action regarding potential new regulations surrounding crypto, like Japan’s plans to approve the first crypto ETFs for the country.
2. Why did the Bitcoin price dip earlier?
Bitcoin dropped after failing to stay above $100,000. Many investors booked profits, while others sold in panic as prices slipped. This led to the biggest loss event since 2022, pushing Bitcoin down toward key support levels at $80,000.
3. Why is the Bitcoin $80,000 support level important?
BTC dropped significantly due to selling pressure, before making a comeback on Jan 27, nearing $88,000. Investors are watching the $80,000 support zone closely. A significant buying event above $80,000 would signal increased confidence, while a dip below it would suggest that additional losses may occur.
4. Are investors still selling Bitcoin ETFs?
Yes, Bitcoin ETF's in the United States recently experienced a large loss of funds as institutions exited on the back of market uncertainty and volatility. However, retail traders likely stepped in today to make profits on Bitcoin as it is currently trading at a discount compared to the old price levels of $100,000.
5. Will Bitcoin price go further up?
Bitcoin can continue the uptrend if it stays above $80,000 and buying volume improves. A move back toward $100,000 would signal strength. If support fails, prices could fall further before finding a stable base.
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