January 26 News, amid rising concerns that the U.S. government may face a shutdown, Bitcoin prices continued their recent correction trend, briefly approaching the $87,000 mark on Sunday evening. Risk aversion sentiments rapidly spread across the entire crypto asset market. Data shows that Bitcoin has fallen approximately 1.9% in the past 24 hours, trading at $87,158. Ethereum also retreated to $2,847, down more than 3%.
Presto Research analyst Rick Maeda stated that this downward movement was not triggered by negative news specific to the crypto industry but was driven by macro risks. “Uncertainty in funding and political deadlock have heightened market tension. The risk of a U.S. government shutdown has become a core variable suppressing risk assets, and the crypto market has also been impacted.”
According to the Associated Press, Congress is divided over funding for the Department of Homeland Security, with Democrats threatening to block the relevant bills, causing the market to reprice political risks. Vincent Liu, Chief Investment Officer of Kronos Research, citing Polymarket data, said that the probability of a partial U.S. government shutdown has risen to 75%, leading funds to move toward defensive positions.
Institutional fund flows also reflect this cautious sentiment. SoSoValue statistics show that as of the week ending January 23, there was approximately $1.33 billion in net outflows from U.S. spot Bitcoin ETFs, marking the worst performance since February 2025. Liu pointed out that although overall funds are retreating, some institutions are still opportunistically positioning in industry infrastructure assets, such as ARK Invest’s purchases of COIN, Bullish, and Circle stocks, indicating that the long-term bullish thesis remains intact.
However, Maeda believes that such operations more reflect ARK’s consistent crypto preference and do not represent the risk appetite of mainstream institutions. “The continued outflow at the ETF level indicates that institutional demand remains marginally weak.”
Next, the market will focus on the upcoming Federal Reserve interest rate decision and U.S. Producer Price Index data to assess inflation and policy paths. For Bitcoin, whether ETF funds stabilize and whether the price can hold key support zones will be critical variables for short-term trends.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
BTC futures open interest fell from $42 billion to $21 billion, as the market underwent deep deleveraging
Bitcoin futures open interest has fallen from its October 2025 peak to $21.0 billion, as the market undergoes a deep deleveraging. With leverage currently low, funding-rate volatility is high, long and short positioning switches frequently, and in the short term Bitcoin lacks a clear trend.
GateNews17m ago
Yesterday, Bitcoin spot ETF net outflows totaled $159.4 million, with Fidelity accounting for the largest outflow.
On April 7, Bitcoin spot ETF net outflows totaled $159.4 million. The main outflow managers included Fidelity, Grayscale, Ark, VanEck, and BlackRock. The only net inflow provider was Valkyrie, with inflows of $2.32 million.
GateNews32m ago
Iran Accepts Two-Week Ceasefire as Oil Drops, Bitcoin Surges Above $71,000
Iran’s Supreme National Security Council announced on April 8, 2026 that it has accepted a two-week ceasefire proposal brokered by Pakistan, while warning that “our hands remain upon the trigger” and attaching a 10-point peace plan demanding US military withdrawal from the region, full sanctions relief, and Iranian control over the Strait of Hormuz.
CryptopulseElite36m ago
DoorDash accounts became a vulnerability in an encryption wrench attack; three suspects have been charged
Three men were indicted for participating in a crypto wrench attack. The method used in the crime involved using stolen delivery-app account credentials to get close to the victims, and then threatening them with violence to force them to transfer their crypto assets. This type of attack is not limited to San Francisco and has become a global problem, threatening the safety of cryptocurrency holders. Prevention recommendations include not disclosing holdings information, using different receiving addresses, and enabling two-factor authentication.
MarketWhisper1h ago
XRP Leads $224 Million Weekly Inflows as Ethereum Lags and Bitcoin Sentiment Remains Mixed
Global digital asset investment products recorded $224 million in net inflows for the week ending April 3, 2026, following a $414 million outflow the prior week, with XRP dominating at $119.6 million while Ethereum saw $52.8 million in outflows and Bitcoin posted $107.3 million in net inflows amid polarized investor sentiment.
CryptopulseElite1h ago
