Bitcoin prices today: Crypto token drops over 5% to $84,400, market capitalisation hits $1.68 trillion

Bitcoin, the largest cryptocurrency, fell to its lowest level since early December on Thursday, 29 January, reaching a new low of around $84,410.

The prices of the largest crypto token dropped 5.43% to $84,409.77 at 9:41 pm on Thursday amid market-wide sell-off, according to CoinMarketCap data. The crypto token's market capitalisation stood at $1.68 trillion. Its trading volume in the last 24 hours was $50.59 billion.

Drop in Bitcoin prices

The latest dip comes after a drop in the crypto market that has been ongoing since early October. While Bitcoin prices had remained flat even as tech stocks and precious metals, including gold and silver, saw gains in recent weeks, cryptocurrencies are now reflecting a broader tech selloff that has also pulled down stocks and metals.

“Today’s weakness underscores crypto’s persistent role as leveraged beta to traditional risk assets, with digital markets amplifying the broader risk-off tone as equities - particularly tech - continue to face pressure.” Chris Newhouse, head of business development at Ergonia, told the news portal. “The move lower is being compounded by leveraged position liquidations as over-leveraged longs get flushed, adding mechanical selling pressure to an already fragile tape.”

Liquidations in crypto assets are increasing swiftly amid the steep decline, with approximately $785 million worth of digital assets wiped out in the past 24 hours. Over half of that occurred in the last four hours, the report said, citing data compiled by Coinglass.

“Derivatives positioning remains defensive.” Jake Ostrovskis, head of over-the-counter trading at Wintermute, told the news agency. Open interest in Bitcoin futures on CME remains close to the lowest levels for the year, while perpetual futures funding rates, an important indicator of market sentiment are near neutral, indicating limited speculative enthusiasm.

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