Why Are Crypto Prices Going Down Today?

Crypto prices declined on Wednesday as traders secured profits and market momentum weakened after a strong rally earlier in the week. 

Bitcoin price dropped to less than $93,000, losing about 2% a day, and Ethereum declined 0.5% to approximately $3,156. Bitcoin continues to gain 6% in 2026 despite the pullback.

Crypto Prices Dip as Profit-Taking Kicks In

The total crypto market capitalization slipped by 1% to $3.24 trillion. The broader correction followed a period of sustained gains. 

Popular altcoins like XRP, Solana, and Dogecoin were also trading in a downward direction. XRP lost over 7% by wiping out previous monthly gains. Solana and Dogecoin were both going into a bear market with general sentiment cooling.

The market backlash was greatly expected after the 4.5% upward movement last week.

ETF Outflows Weigh on Crypto Market

There has been a high amount of miner selling that has contributed to a significant decline in crypto prices. Riot Platforms allegedly sold 161 million Bitcoin, citing increasing liquidity requirements among mining companies.

January 6 witnessed net outflows of $243 million by Spot Bitcoin ETFs. IBIT of BlackRock was the only one that had net inflows. Ether ETFs registered inflows of $115 million, the third day of positive change. 

On January 6 (ET), Bitcoin spot ETFs saw a total net outflow of $243 million, with only BlackRock’s IBIT ETF experiencing a net inflow. Ethereum spot ETFs saw a total net inflow of $115 million, marking the third consecutive day of inflows. Solana spot ETFs had a net inflow of… pic.twitter.com/a86lhBWhNB

— Wu Blockchain (@WuBlockchain) January 7, 2026

Solana ETFs had inflows of 9.2 million in the face of price pressure. Also, the liquidation of 57 BTC by the U.S. Department of Justice in the case of Samourai Wallet contributed to the weight of the sell side.

Technical Rejection and Liquidations Accelerate Pullback

The rejection of Bitcoin at the $94,000 mark caused further profit-taking and short-term volatility. Over 64 million in Bitcoin positions were sold in less than 24 hours. 

Open interest decreased by almost 24% indicating less leverage and business risk appetite. The technical indicators shifted to the neutral position, indicating that the recent rally might have overheated. Due to traders de-risking, crypto prices reacted to the short-term adjustments of the key tokens.

Fed Commentary and Job Data Shape Outlook

The macro environment is positive despite the recession of crypto prices. Fed Governor Stephen Miran has described the existing policy of the rate as obviously restrictive, and this indicates it could be eased. 

The recent JOLTS data on U.S.labor is soft, and it acts as a sign to the anticipation of interest rate reduction.

Reduction of the rates would enhance the crypto market by elevating the liquidity situation. In the past, the declining rates are advantageous to the digital assets, namely Bitcoin and Ethereum. 

Therefore, the wider crypto market has the potential to move on an upward trend after charges have calmed down in the short term.

The existing pullback indicators are more indicative of consolidation as against reversal of the trend. 

Short-term selling, leverage resets, and miner activity are responding to the Crypto price. Nevertheless, persistent ETF inflows in Ethereum and the renewed interest in altcoins indicate that long-term mood is preserved.

The crypto market is at a neutral position, and traders are closely monitoring the macro signals, ETF flow, and technical levels.