Why Is Crypto Down Today? – January 1, 2026

Market Overview - The total cryptocurrency market capitalization has decreased by 0.8% over the past 24 hours, now approximately $3.06 trillion, while maintaining above the $3 trillion mark [1][7] - Total crypto trading volume in the last day is around $87.6 billion [1] Major Cryptocurrencies Performance - Bitcoin (BTC) has declined by about 1.2%, trading near $87,735 [3] - Ethereum (ETH) has shown relative strength, down only 0.1% to around $2,981 [3] - Solana (SOL) has fallen roughly 1% to $124.87, while BNB is down close to 0.9% at $859.65 [4] - XRP has decreased by about 1% to $1.85, and Dogecoin (DOGE) has slid around 2.1% to $0.1205 [4] - Tron (TRX) is one of the few large-cap assets in positive territory, posting a 0.7% gain to trade at $0.2849 [4] Smaller Tokens and Market Sentiment - Bitlight is leading the gainers with a surge of more than 120%, while Collect on Fanable and Everlyn have also posted strong double-digit gains [5] - Lighter is the biggest loser among trending tokens, dropping more than 8% [5] - The Fear and Greed Index indicates cautious sentiment in the market, currently at 31 in the fear zone [7] ETF and Future Expectations - US BTC spot ETFs recorded net outflows of $348.1 million, while US ETH spot ETFs saw outflows of $72.1 million [7] - Analysts anticipate steadier Bitcoin gains in 2026, supported by easing Fed liquidity but tempered by high rates [7] - BTC is consolidating between approximately $85,000 and $88,000, with key support near $80,000 and resistance above $92,000 [7] - ETH is stabilizing above $2,900, with recovery possible above $3,100 and downside risk below $2,800 [7] Legal Developments - A US federal judge dismissed a crypto investor lawsuit against Mark Cuban and the Dallas Mavericks [7]