Crypto market plunges 3.8% as bitcoin slips to $89,329, ethereum down 6.6%

• Bitcoin fell 3.22% to $89,329 amid US regulatory and EU geopolitical concerns
• $1 billion in crypto liquidated; Bitcoin and ETH hit $830 million.
• Major altcoins dropped; Canton surged 12.2%, Monero plunged 17.2%

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Bitcoin tumbled 3.22 percent to $89,329 on January 21 morning, as US regulatory worries and rising tensions over Greenland rattled the crypto market yet again which was down almost 4 percent.

Nearly $1 billion in leveraged positions were liquidated over the past 24 hours, with bitcoin and ethereum together accounting for around $830 million.

Bitcoin, the world’s largest cryptocurrency continues to be volatile, climbing to $89,670 and dipping to $87,828 during the morning session.

"The cryptocurrency market extended its downturn this week, with major assets falling as macro headwinds and geopolitical tensions hurt risk appetite. The decline followed weakness in global equities after the US President Donald Trump’s renewed tariff threats toward Europe raised fears of a trade conflict," said Riya Sehgal, Research Analyst, Delta Exchange.

According to CoinSwitch Markets Desk, the broader crypto market is down around 3.8 percent.

"Technically, Bitcoin is finding short-term support near $88K; holding this level could enable a bounce toward $89.5K–$90K, while a breakdown risks a move toward $87.5K," said CoinSwitch Markets Desk.

Other crypto tokens were volatile too. ADA was down 1.90 percent, ETH 6.64 percent, XRP 2.78 percent, SOL 4.74 percent, and Tether 0.04 percent. USDC gained 0.01 percent in the past 24 hours.

"All the other major altcoins, like Ethereum, BNB, XRP, Solana, Tron, Dogecoin & Cardano, tank below their respective resistances. Amid the bearish influence, the Canton price surged over 12.2 percent in the past 24 hours, followed by Story with nearly 8.5 percent and LayerZero by 4.92 percent. Besides, Monero plunges over 17.2 percent, Hyperliquid by 10.28 percent, and Morpho by 9.05 percent," said CoinDCX Research Team.

Cryptocurrency prices at 9.12 am on January 21:

Why is bitcoin down?

“The recent pullback in bitcoin below key psychological levels has shown how quickly sentiment can shift in digital assets and we’re seeing a similar compression in ethereum and XRP as well, driven by broader macro-economic factors and market positioning," said Avinash Shekhar, Co-Founder & CEO, Pi42.

These moves are playing out against a backdrop of healthy on-chain activity and continued institutional interest that often precede stabilisation. Investors should focus on selective accumulation around structural support levels in bitcoin, evaluate entry points in ethereum’s consolidation range and consider building positions in XRP on confirmed signs of renewed demand, he said.

What’s happening in the crypto market?

Over the past 24 hours, global markets have remained cautious amid ongoing geopolitical and trade-related uncertainty, which continues to influence overall risk sentiment.

"This has led to pressure on equities and renewed interest in traditional safe-haven assets, such as gold. Crypto markets have reflected this caution as well, not through panic selling, but through consolidation, lower leverage, and reduced risk-taking," said Nischal Shetty, Founder, WazirX.

Here’s a rundown of the crypto market according to Shetty:

• Bitcoin and other large-cap cryptos are broadly in line with global risk assets, suggesting that near-term price action remains influenced by macro developments rather than crypto-specific triggers. Traders have adopted a wait-and-watch approach, reducing exposure and reassessing positions until clearer signals emerge.
• This phase does not change crypto’s long-term outlook. As the asset class becomes more integrated into global finance, it naturally responds to macro headlines. At the same time, interest in crypto as an alternative financial system remains intact. As global clarity improves, market confidence is likely to adjust accordingly.

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