Crypto Market Bleeds Red: Bitcoin Falls Below $93K as Rally Fizzles Out

Tuesday, January 7, 2026

The short-lived crypto rally just hit the brakes.

After teasing $95K yesterday, Bitcoin crashed back to $92,626 today—down 1.5% and erasing Monday's gains. Ethereum's holding steady at $3,259 (up 1.5%), but almost everything else is bleeding.

XRP got hammered worst: Down 5.6% to $2.26 after profit-takers dumped following yesterday's 12% rally.

The pattern's becoming painfully clear: crypto pumps overnight, then dumps during US trading hours. It happened again today—and traders are getting frustrated.

The Damage: Who Got Hit Hardest

Current Prices (January 7, 2026):

Major Coins:

• Bitcoin: $92,626 (-1.02% / 24h)
• Ethereum: $3,259 (+1.51% / 24h) ← Only major winner
• XRP: $2.26 (-5.64% / 24h) ← Biggest loser
• Solana: $139.20 (+1.17% / 24h)
• Dogecoin: Down from recent highs

Market Stats:

• Total market cap: ~$3.0 trillion (down from $3.2T peak)
• Fear & Greed Index: 41 (neutral) (persistent anxiety)
• Bitcoin dominance: Holding steady

What's notable: Ethereum showing strength while Bitcoin falls is unusual. Typically they move together. This divergence suggests different forces at play.

Why Is Crypto Down Today? 3 Reasons

1. The US Trading Day Curse Continues

Here's the frustrating pattern:

• Asian/European hours: Crypto rallies
• US market opens: Immediate selloff

Today it happened again. Bitcoin was pushing toward $95K at market open, then dropped $2,000 in 30 minutes once American traders woke up.

$125 million in long positions liquidated in one hour.

This isn't random. US traders are either:

• Taking profits after overnight gains
• More risk-averse (waiting for macro clarity)
• Institutional desks rebalancing (algorithms selling)

Whatever the cause, the US trading day has become a consistent headwind for crypto.

2. Geopolitical Uncertainty: US-Venezuela Tensions

Rising tensions between the US and Venezuela are spooking risk assets.

While Bitcoin is often called "digital gold" and a "safe haven," it's acting more like tech stocks—selling off when geopolitical risk rises.

The Venezuela situation:

• US potentially ousting Maduro
• Oil sector disruption fears
• Global instability = risk-off sentiment

When markets get nervous, they sell volatile assets first. Crypto's at the top of that list.

3. Crypto Legislation Uncertainty

The US Senate Banking Committee is voting on a major crypto bill January 15th—and nobody knows if it'll pass.

Why this matters:

• If it passes: Regulatory clarity = bullish
• If it fails: More uncertainty = bearish
• Right now: Traders sitting on sidelines waiting

This "wait and see" mode is killing momentum. Volume's thin. Nobody wants to make big bets before knowing the regulatory outcome.

Add in ongoing discussions about Fed interest rate policy and upcoming employment data, and you've got a recipe for sideways-to-down price action.

XRP's 5.6% Drop: Profit-Taking After the Pump

XRP was the star performer yesterday—up 12% to $2.40, flipping BNB for the #4 spot.

Today? Reality check.

Down 5.6% to $2.26 as traders who bought the dip yesterday took profits.

This is textbook crypto volatility:

• Day 1: +12% (FOMO kicks in)
• Day 2: -5.6% (profit-takers sell)
• Result: Net gain, but painful for late buyers

XRP's still up significantly on the week (+24%), but today's drop is a reminder that parabolic moves don't last. Even with $1.3B in ETF inflows and institutional demand, short-term price action stays wild.

Ethereum's Quiet Strength: The Only Green Light

While Bitcoin and XRP bleed, Ethereum's up 1.5% to $3,259.

Why ETH is outperforming:

1. Fusaka Upgrade Momentum

• Network adding 292K new addresses daily (+110% growth)
• Transaction fees at $0.17 (making Ethereum actually usable)
• Layer 2 costs dropped 95%

2. ETF Inflows Strong

• Ethereum ETFs saw $174.5M inflow (Jan 2)
• Outperforming Bitcoin ETFs recently

3. Less Volatile Lately

• ETH holding above $3,200 support cleanly
• Not getting whipsawed like BTC

Tom Lee's prediction: Ethereum is "dramatically undervalued" and entering a "supercycle similar to Bitcoin 2017-2021." His firm just bought $88.7 million in ETH to back up that call.

Market Sentiment: Fear Still Dominates

Crypto Fear & Greed Index: 41 (Neutral)

That's up from 31 (fear) last month, but still nowhere near "greed" territory (which starts at 55+).

What this tells us:

• Retail investors: Cautious, not FOMOing
• Institutions: Slowly accumulating, not rushing
• Overall mood: "Wait and see" beats "buy everything"

This isn't bearish—it's just not bullish enough to sustain rallies. Markets need conviction to break out. Right now, conviction's lacking.

The Bigger Picture: Consolidation, Not Collapse

Despite today's red, the market's not collapsing—it's consolidating.

Bitcoin's range: $85K-$95K (stuck for weeks) Ethereum's range: $3K-$3.3K (grinding higher) XRP's range: $2.00-$2.40 (volatile but contained)

Key levels to watch:

Bitcoin:

• Support: $90K (critical psychological level)
• Resistance: $95K (failed 3x now)
• Break above $95K: Opens door to $100K
• Break below $88K: Could test $85K again

Ethereum:

• Support: $3,000 (holding strong)
• Resistance: $3,350-$3,400
• Break above $3,400: Target $3,500+
• Fall below $3K: Retest $2,900

XRP:

• Support: $2.00-$2.10
• Resistance: $2.40-$2.50
• Break above $2.50: Could run to $3.00
• Fall below $2.00: Back to $1.80

What Happens Next?

Short-term (This Week):

• Bitcoin likely stays in $90K-$95K range
• Ethereum could test $3,350 if momentum holds
• XRP needs to reclaim $2.30 to resume uptrend

Medium-term (January):

• January 9: SEC Dogecoin ETF decision (market-moving event)
• January 15: Senate crypto bill vote (huge for sentiment)
• Late January: Fed meeting + employment data (macro drivers)

Long-term (2026):

• Bernstein: Bitcoin to $150K
• Tom Lee: Bitcoin new ATH by end of January (aggressive)
• Ethereum: "Supercycle" narrative building

Bottom Line: Patience Required

Today's selloff is annoying, but not alarming.

What we're seeing:

• Normal profit-taking after yesterday's pump
• Geopolitical jitters creating risk-off pressure
• US trading hours continuing to be a headwind
• Low volume making moves more volatile

What we're NOT seeing:

• Panic selling
• Major support breaking
• Institutional exodus

The January Effect (new year = new capital = rallies) is playing out, but it's messy. Two steps forward, one step back.

If you bought Bitcoin hoping for a straight shot to $100K in January, you're probably frustrated. If you're accumulating with a 6-12 month view, today's dip is just noise.

Markets don't move in straight lines. Even in bull runs.

References

1. Timesbull - "Crypto Prices Today - Bitcoin Falls, Ethereum Shows Strength" (January 7, 2026)
2. CryptoNews - "[LIVE] Crypto News Today: Latest Updates for Jan. 07, 2026" (January 7, 2026)
3. CoinDesk - "Bitcoin price news: BTC fails to hold early gains, falls back to $92,000" (January 6, 2026)
4. CoinPedia - "Why Are Bitcoin, Ethereum and XRP Prices Falling Today?" (December 2025)
5. 24/7 Wall St. - "XRP ETFs Start 2026 With $1.3B: Can Institutional Demand Push Price to $4?" (January 5, 2026)