Bitcoin price jumps near $87,500 on weak dollar

Bitcoin price today

• Bitcoin steadies at $88K after holding $86K support during market volatility.
• Crypto tokens show mixed moves; Axie Infinity leads gainers with a 37.35% rise
• VanEck launches Avalanche ETF; Tether's gold holdings reach $4.4 billion

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Bitcoin fell to a low of $87,488 early on January 27 but recovered some of the losses to trade at $88,301, representing 0.70 percent gain in the last 24 hours. The world’s largest cryptocurrency remained volatile, as it had touched $88,760 before taking the fall.

"Bitcoin is stabilising after successfully defending the $86,000 level, hinting at a near-term recovery. Fears around a possible US government shutdown led to a brief risk-off move, but the narrative is now improving as the dollar weakens to a four-month low, driving flows back into assets like Bitcoin and gold," said Akshat Siddhant, Lead Quant Analyst, Mudrex.

According to Riya Sehgal, Research Analyst, Delta Exchange, BTC faces stiff resistance between $89,500 and $91,000, with support around $86,000. ETH mirrors this structure, capped near the $3,000–$3,050 zone, with key support at $2,800.

Other crypto tokens were volatile too. ADA was up 1.43 percent, ETH 2.41 percent, XRP 1.36 percent, SOL 1.27 percent, while Tether traded flat. USDC declined 0.02 percent in the past 24 hours.

"ETH, BNB, SOL, TRX, DOGE & ADA are unable to break through local resistance, as the markets remain focused on Bitcoin. However, cryptos like Axie Infinity, Hyperliquid, Pump.fun, and Chiliz lead the top gainers with a rise of 37.35%, 15.08%, 10.92%, and 10.20%, respectively. Besides, World Liberty Financial and Story plunged by over 4%, followed by MYX Finance & Memecore by 3.43% and 2.46%," said CoinDCX research team.

Here's how the price of cryptocurrencies has moved.

 Why is bitcoin down? 

“Bitcoin trading around the $87,000–$88,000 zone reflects a market caught between technical pressure and structural support. Elevated derivatives activity, upcoming options expiry, and recent fund outflows have added near-term stress, while macro uncertainty and geopolitical concerns are keeping risk appetite restrained. That said, this phase looks more like a compression of volatility rather than a breakdown in market structure.

"Buying interest remains visible around key support levels, suggesting participants are selectively accumulating rather than exiting outright. While Bitcoin is on track for another soft monthly close, the absence of panic selling and steady demand during pullbacks points to consolidation rather than capitulation. As leverage resets and macro signals stabilise, Bitcoin’s ability to hold this zone will be critical in determining the next directional move,” said Avinash Shekhar, Co-Founder & CEO, Pi42.

What’s happening in the crypto market?

Here’s a rundown of the crypto market, according to WazirX founder Nischal Shetty and CoinDCX research team:

• Global markets are in a retreative mode towards risk-on assets like crypto. With the Congress in the USA being uncertain about several appropriation bills, confidence among investors is withering. The shutdown, which could be a likely outcome if the bills aren’t finalised. This will be a key volatility driver unless there is a clear update on the federal government shutdown mitigation.

• News of potential 100 percent tariffs on Canada and trade tensions involving Europe and Greenland have added to the ongoing scepticism in the market. These developments have supported risk-off assets like gold and silver, with each recording impressive gains.

• In Asia, equity markets slid, especially in Japan, as the yen strengthened against the U.S. dollar. A stronger yen typically pressures exporters and adds to broader risk-off sentiment in the region.

• Currently, markets are pricing short-term uncertainty. Historically, during such phases, capital only moves to equities and crypto, once macro conditions stabilise.

• Coinbase launches an independent advisory board to access future of quantum computing risks to crypto security.

• VanEck launches its Avalanche ETF, $VAVX, now live and officially trading on NASDAQ.

• Tether bought 27 tons of gold in Q4 2025, bringing its gold holdings to about $4.4 billion.

• Ethereum transaction fees drop to their all-time low, levels not seen since 2017, while HIP-3 open interest hits an all-time high of $790M, up from $260M a month ago.

• President Trump raised tariffs on South Korea from 15% to 25%, after Seoul’s legislature failed to approve a previously agreed trade deal.