Bitcoin falls below $90,000: Early rally ends; crypto liquidations hit $477 million

Bitcoin fell 2.4% in 24 hours, trading at $89,881. The total value of all cryptocurrencies dropped 2.6% from $3.305 trillion. Most of the losses were for bullish traders, who held positions expecting prices to rise. Data from CoinGlass shows long positions accounted for over 90% of liquidations.

The sell-off extended beyond Bitcoin. Ethereum dropped 3.9%, and XRP fell 7.6%. Meme coins that rose sharply in early January also reversed. Pepe fell 6.6% and Bonk lost 8% after nearly doubling in value in the first week of 2026.

Illia Otychenko, lead analyst at CEX.IO, said the fall below $90,000 shows the early-year momentum has faded. “Fresh allocations at the start of 2026 and supportive geopolitical headlines helped initially, but they were not strong enough to sustain a rally,” he told Decrypt. Wenny Cai, COO of SynFutures, added that investors are waiting for US jobs data, which has limited risk-taking.
Outflows from US Bitcoin exchange-traded funds added to selling pressure. Otychenko said $243 million left ETFs recently. Cai explained that while ETFs are usually good for long-term growth, they can reduce buying in the short term.

Market liquidity is low, which makes price swings larger. Analysts said this creates choppy trading and can exaggerate declines. Both Otychenko and Cai said Bitcoin’s price may stabilize if it finds support after the upcoming US jobs report.

1. Why did Bitcoin fall below $90,000?
   Bitcoin fell due to fading early-year momentum, cautious investors ahead of US jobs data, and ETF outflows.
2. Which other cryptocurrencies were affected?
   Ethereum, XRP, and meme coins like Pepe and Bonk also fell sharply.
3. How does market liquidity affect Bitcoin?
   Low liquidity can make price moves larger and trading more unstable, even if demand is steady.