The crypto market opened the day under pressure after Bitcoin lost the $90,000 level, a key psychological support traders had been watching closely. BTC briefly slipped below that mark earlier today, triggering a wave of selling across the market and dragging most major altcoins lower with it.
While Bitcoin has reclaimed ground before after similar dips, this move hit sentiment hard. The $90K level had become a line in the sand for short-term bulls, and once it gave way, the reaction was fast.
What you'll learn 👉
Heavy Liquidations Forced the First Wave Lower
One of the main drivers behind the drop was aggressive leverage unwinding. Over the past 24 hours, more than $67.5 million in Bitcoin positions were liquidated, with roughly 89% of those coming from long trades. This points to traders leaning too heavily on upside continuation just as momentum started to stall.
Perpetual futures open interest fell by 16.4% during the same period, confirming that the move was driven by forced deleveraging rather than spot selling alone. Funding rates had climbed to around +0.0075%, which made long positions increasingly expensive to hold. Once Bitcoin tested the $90K area, those overextended longs were pushed out quickly.
If open interest continues to decline in the coming sessions, volatility could remain elevated as the market searches for a new equilibrium.
JUST IN: Bitcoin falls below $90,000
— Bitcoin Junkies (@BitcoinJunkies) January 8, 2026
$140,000,000 worth of leveraged crypto positions have been liquidated in the past 30 minutes. pic.twitter.com/O4ptfzlxSw
Capital Rotates Back Toward Bitcoin Safety
As prices fell, Bitcoin dominance edged higher, rising to 58.34% from 58.23%. While that move looks small on paper, it reinforces a broader trend that has been building for weeks. The Altcoin Season Index remains stuck at 26, firmly in “Bitcoin Season” territory.
Ethereum and XRP both had net outflows during the dip, which means investors reduced exposure to higher-beta assets and rotated toward Bitcoin as a relative safe haven. Even positive headlines, such as ongoing ETF developments and institutional filings, failed to stabilize the broader market.
If Bitcoin dominance pushes above the 58.5% level, it could signal continued weakness across altcoins in the near term.
Crypto Breaks Away From Traditional Risk Assets
Another notable factor is crypto’s growing divergence from traditional markets. Over the last 24 hours, Bitcoin’s correlation with the Nasdaq-100 dropped to -0.60, marking a sharp decoupling from equities. At the same time, gold rose roughly 0.46%, pointing to a broader shift toward defensive positioning.
This means crypto is reacting to internal pressures rather than macro risk-on or risk-off signals. Ongoing uncertainty around regulatory developments, including delays tied to the CLARITY Act, and sector-specific headlines are weighing on confidence.
For now, the loss of $90K has reset short-term expectations. Whether this move turns into a deeper correction or a temporary shakeout will depend on how Bitcoin behaves around the next support zone and whether leverage continues to unwind.
The next few sessions are likely to be decisive for market direction.
Read also: Bitcoin Whales Are Buying ZEC as Privacy Coins Re-Enter the Institutional Conversation
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