Bitcoin plunged 6.4% to an intraday low of $83,383 on Thursday, January 29, 2026, its lowest level in more than two months, as Bitcoin ETFs recorded over $1.1 billion in weekly outflows and traders repositioned for further downside amid rare earth tariff tensions and Fed uncertainty.

The selloff triggered $319 million in liquidations and pushed 97% of expiring call options out-of-the-money, signaling a decisive shift in market sentiment.

In this article I am answering the question of why Bitcoin is going down today, analyzing BTC/USDT chart and checking the newest Bitcoin price predictions.

Bitcoin Price Crashes to Two-Month Low

Bitcoin (BTC) is trading at $3,728 after touching an intraday low of $83,383 on Thursday, the lowest price since November 21 and a stunning reversal from Tuesday’s high near $90,400. The 6.4% decline came swiftly as Bitcoin started the day at $90,315 before sellers overwhelmed the market.

The selloff extended across the entire cryptocurrency sector, with 90 of the top 100 digital assets trading in the red:

Daily trading volume surged to approximately $48-49 billion as the selloff accelerated, suggesting forced liquidations and rapid unwinding of leveraged positions. Bitcoin’s total market capitalization fell to about $1.69-1.72 trillion, down approximately 4-5% on the day.

Why Bitcoin Is Falling? Five Key Drivers Behind Today’s Selloff

1. Massive ETF Outflows Hit $1.1 Billion

Bitcoin spot ETFs recorded -$1,137.4 million in net outflows over five consecutive trading days from January 20-26, marking the heaviest weekly exodus since early January.

Daily ETF Outflow Breakdown:

January 20: -$204.1M January 21: -$309.5M January 22: -$527.9M (peak selling day) January 23: -$22.3M January 26: -$73.5M

The outflows were highly concentrated in three major products accounting for approximately 92% of total exits:

Fidelity FBTC: -$757.20M Grayscale GBTC: -$289.8-408.10M BlackRock IBIT: -$508.7M Ark 21Shares ARKB: -$48.90M

This concentration suggests institutional repositioning rather than broad retail panic—larger allocators who “tend to move first and move size” are reducing Bitcoin exposure.

2. Capital Rotation to Precious Metals

According to Paul Howard, Director at Wincent: “Cryptocurrency markets have been the victim of risk capital flowing into the still popular commodities trade. We have seen large inflows and trades in perpetual tokenized gold, silver and uranium products. This has attracted capital and trading away from the crypto spot majors.”

The numbers tell the story:

Gold: Surged past $5,600 per ounce (up 30% YTD) Silver: Hit record high of $120 per ounce (up 65% in January alone) Bitcoin: Down 33% from October’s $126,000 peak

XTB analyst notes: “ETF outflows, limited buying activity from Bitcoin-accumulating companies, and disappointing BTC performance compared to indices or precious metals are causing global capital’s attention to shift away from crypto.”

3. Rare Earth Tariffs Spike Volatility

The US announcement of price floors for rare earth minerals triggered a sharp increase in crypto market volatility. Howard explains: “Volatility has picked up and is now trading above 40 (following the US’s statement on price floors for rare earths). This headline added to the 5% sell-off the last 24h catching some by surprise.”

The tariff concerns echo previous market disruptions when Trump’s threats of 100% tariffs on Chinese goods and China’s rare earth export restrictions sent shockwaves through risk assets in late 2025.

4. Federal Reserve Holds Rates, Uncertainty Persists

The Federal Reserve held interest rates unchanged at 3.50%-3.75% at Wednesday’s FOMC meeting, but provided limited clarity on future rate cuts. Chairman Jerome Powell’s cautious stance disappointed traders hoping for more dovish signals.

The combination of persistent Fed hawkishness and escalating geopolitical tensions dampened investor appetite for riskier assets like cryptocurrencies. Bitcoin’s correlation with traditional risk assets reasserted itself after months of divergence.

5. Options Market Shows Bearish Positioning

A staggering $9 billion in Bitcoin options expire on January 30, but Howard notes this “reflects

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