The cryptocurrency market experienced a steep decline today, Jan. 30, 2026. Bitcoin’s (BTC) price fell to below $82,000, a level last traded at in April 2025. Around $1.75 billion was wiped out from the crypto market in the last 24 hours, causing substantial worry among investors. Let’s discuss why the cryptocurrency market has faced another crash, and what may happen next.
Why Did The Cryptocurrency Market Crash?
The cryptocurrency market has struggled over the last few months. Bitcoin (BTC) reached an all-time high of $126,080 on Oct. 6, 2025, but the feat was followed by a market-wide correction later that month. The crypto market has been on a downtrend since October. The 2025 crash was triggered by macroeconomic uncertainties and investors’ pricing in the lack of interest rate cuts.
The latest cryptocurrency market crash could be due to multiple factors, including the fact that the US government is close to another shutdown. Firstly, sell pressure has been high, arising from macroeconomic uncertainties. Global geopolitical tensions have further put a strain on the crypto market. The developments have led to investors parking their funds in safe havens, such as gold and silver, both of which have hit new all-time highs.
Also Read: US Close to Government Shutdown as Senate Blocks Funding
Moreover, President Trump is suing the IRS and the US Treasury for $10 billion. The potential government shutdown and the IRS-US Treasury suit could be the light that ignited the fuse. The development may have led to a massive dip in investor confidence, leading to a massive exodus from risky markets, such as cryptocurrencies.
Furthermore, the market crash comes right ahead of potential pro-crypto legislation in the US. Coinbase CEO Brian Armstrong voiced concerns about the bill, saying that the current bill is worse than no bill. Investors may be becoming weary about the upcoming cryptocurrency regulatory bill, choosing to exit positions before it is passed.
The cryptocurrency market may be entering another long winter. We could see prices fall below the $70,000 mark over the coming days.
