Why the Crypto Market is Down Today, January 26, 2026

Jakarta, Pintu News – The crypto market continues to decline, with Bitcoin dropping below $87K and returning to its previous low. This comes amid renewed fears of a trade war between the United States and Canada.

Will the Crypto Market Rise or Continue to Fall?

Traders are now facing losses on their assets as bearish sentiment returns to the market. To date, the market has experienced a major drop with Bitcoin (BTC) and altcoins trading below their previous highs. The price of BTC broke the support level and fell to $86K over the weekend.

Read also: Bitcoin Price Drops to $87,000 Today: Is the BTC Market Ready for a Rebound?

One of the main causes of this decline was President Trump’s threat to impose 100% tariffs on Canada, for allegedly engaging in trade deals with China. Since the statement, around $100 million has exited the crypto market.

Meanwhile, Canada has stated that it has no intention of making a deal with China amid the new threat. In addition, fears of a potential government shutdown also undermined investor confidence. It is reported that a funding bill to keep federal agencies operational has yet to be passed.

Last week, the House of Representatives passed a final bill on federal government measures. The bill was then forwarded to the Senate for further processing.

However, reports suggest that Democrats are refusing to support the continuation of the process amid national outrage over the Minneapolis shooting incident.

In addition to the bearish sentiment in the crypto market, if a shutdown occurs, then important policy discussions related to crypto could also be delayed.

For example, the CLARITY Act, which is currently on the Senate agenda, could be delayed again for several weeks. This could potentially erode investor confidence and lead to a deeper drop in Bitcoin price.

Key US Economic Events that May Affect the Market

Current market sentiment could change in the event of positive economic developments. On Wednesday, the Federal Reserve is scheduled to hold its first FOMC meeting of the new year.

Read also: 4 Crypto’s that Analyst Ali Martinez is Highlighting Right Now, What Will Happen?

As usual, they will discuss whether the current interest rate will be maintained or will be cut again. The last rate cut was made last December and was in line with market expectations.

At that time, the committee lowered the interest rate target range by 25 basis points to 3.5% to 3.75%. Meanwhile, many experts predict that there will be no rate cut this January, given that the previous cut has already been made, while the crypto market is still waiting for the impact.

Another event that investors are paying attention to is the release of PPI (Producer Price Index) inflation data for December. Typically, Bitcoin prices react to this data, especially when inflation increases.

For example, last November’s PPI inflation data was recorded well above expectations, at over 3%. This kept the market in a bearish phase, as token price movements were restrained.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Coingape. Why is the Crypto Market Down Today (Jan 26). Accessed on January 26, 2026