Crypto Market Crash: BTC Drops Below $89K as Bloody Week Ends
The mood is heavy on the markets this Wednesday, January 21, 2026. Bitcoin (BTC) is trading at $88,312.84, down 4.6% on the day and 7.3% over the week. Ethereum (ETH) follows the trend at $2,935.62, also in decline. This brutal correction comes after a consolidation period that had seemed promising. Trading volumes have spiked, signaling a wave of panic selling. Technically, BTC has broken through the key support level of $90,000, a level that had held since the start of January. The Relative Strength Index (RSI) has dropped below 40, indicating an oversold zone, but with no immediate reversal signal. Macroeconomic factors are weighing heavily: fears of a US interest rate hike, fueled by stronger-than-expected inflation data, have driven investors toward safe-haven assets like the dollar. The overall sentiment is bearish, with massive liquidations on long positions. Altcoins are also suffering, with some losing over 10%. For now, the market is searching for a bottom. Outlook: a stabilization around $87,000 is possible if buyers return, but the trend remains fragile. The coming days will be crucial in determining whether this move is a simple correction or the start of a deeper downtrend.
