January 2026 will be remembered as the month that brought a serious correction to the crypto market. Bitcoin fell below the psychological level of $80,000, while altcoins experienced much greater losses. Ethereum lost almost 19 percent of its value, and Solana, which was announced as the “killer of Ethereum” at the end of 2025, was cut by a quarter and fell from 240 to 165 dollars.
In the first few days of the month, many investors still believed in euphoric forecasts and growth up to six-digit amounts. However, the end of the month brought a sobriety that surprised many. BTC’s fall below 80k, with a low of $78,700, showed that this was not a simple technical correction, but a profound change in sentiment.
Experts say it’s a “perfect storm” – a combination of policy changes at the Federal Reserve, aggressive tariff policy and technical liquidity issues. The nomination of Kevin Warsh as Fed chairman has created uncertainty among institutional investors. His announcement of tougher measures against inflation has immediately hit cryptocurrencies, which have been booming in recent months on relatively cheap money.
But the problem is not just politics. The ETF market has suffered a sudden capital outflow: more than $1.5 billion was withdrawn in a single week. Liquidations in the futures market wiped out $1.6 billion worth of positions in just a few hours. All of this shows how fragile and susceptible to knock-on effects the market remains.
Experts estimate that it could take another six to nine months for bitcoin to return to a more stable trajectory, and trading volumes are likely to remain low until a new demand base is formed. Investor confidence has been shaken as many are faced with large unrealized losses for the first time.
January has thus become a month in which many crypto investors experienced a cold shower, and the question everyone is now asking is: when will the market start to grow and how fast?
