Bitcoin Extends Pullback as Total Market Cap Slides 27% From Peak; Check Cryptocurrency Prices, Jan 25

The allure of crypto seems to be dull as the market is declining sharply. Bitcoin and major altcoins are trading lower, as investors continue to reassess risk after last year's sharp rally. The total crypto market capitalisation at present is hovering around $3.12 trillion, with a 27% decline from late-2025 peaks.

Market participants point to narrow leadership by large-cap tokens, while mid- and small-cap cryptocurrencies have witnessed steeper drawdowns, reflecting cautious positioning amid geopolitical uncertainty and reduced speculative leverage.

Bitcoin Price Today: Down Nearly 30% From Record High

Bitcoin (BTC), the world's largest cryptocurrency, was trading at around $88,214, down nearly 1% on the day. The decline leaves Bitcoin almost 30% below its all-time high of $126,296, which was recorded during the euphoric phase of the 2025 rally.

At current levels, Bitcoin's market capitalization stands at approximately $1.76 trillion, with 24-hour trading volumes near $7.8 billion.Bitcoin had pushed the broader crypto market to a peak valuation of around $4.2 trillion in late 2025.
"Bitcoin is trading near $89,700 as markets await a clear catalyst to set the next direction, with macroeconomic and geopolitical uncertainties keeping activity subdued.Despite this, the underlying sentiment remains constructive. Institutional conviction continues to show through, with Michael Saylor signalling further Bitcoin accumulation even at current levels.

Meanwhile, Ethereum is also drawing attention as exchange reserves have fallen to around 16.2 million ETH, the lowest since 2016, indicating reduced sell-side supply. For ETH, a sustained move above $3,100 could unlock momentum toward $3,400, while $2,850 remains a strong support zone." said Akshat Siddhant, Lead Quant Analyst, Mudrex.

Ethereum and Altcoins Mirror Broader Weakness

Ethereum (ETH) slipped below the $3,000 mark, trading at around $2,930, as selling pressure extended across the altcoin space. Ethereum's market cap now stands near $353 billion, with weekly losses approaching double digits.

• Among other large-cap tokens:
• BNB traded at $878, down over 1%
• XRP hovered near $1.89, slipping modestly
• Solana (SOL) eased to $126 while Dogecoin (DOGE) and Cardano (ADA) also traded lower, tracking the broader market trend

Despite the weakness, stablecoins such as USDT and USDC remained firmly pegged to the dollar, highlighting their role as liquidity buffers during periods of market stress.

Institutional Flows Slow, But Sentiment Stabilises

Institutional inflows into crypto via spot Bitcoin and Ethereum ETFs have slowed from last year's highs, but have not reversed sharply, helping stabilise sentiment.

The recent correction has been driven by a combination of geopolitical tensions, profit-taking after record highs, and leverage-led liquidations, particularly in derivatives markets. These factors contributed to the 26-28% drawdown from peak market valuations.

"Recent volatility across the crypto market reflects a convergence of macro and policy driven signals rather than a deterioration in fundamentals. While Bitcoin briefly came under pressure near the $90,000 zone amid ETF outflows, global risk-off sentiment, and renewed debate at Davos around Bitcoin's role in the financial system, the broader market has shown resilience. The global crypto market capitalisation has rebounded to around $3.13 trillion, indicating that liquidity is returning after sharp swings." said Avinash Shekhar, Co-Founder & CEO, Pi42

" Trump's withdrawal of the Greenland tariff threat has also helped ease near-term macro anxiety. Structurally, Bitcoin continues to hold above critical support levels, with $86,000 emerging as an important downside reference rather than a base case. Continued whale accumulation and Bitcoin's fixed supply dynamics are keeping long-term conviction intact, even as the US Senate's delay of the Clarity Act extends regulatory uncertainty. Overall, the market appears to be digesting headlines while maintaining a constructive medium-term outlook." he further added.