Bitcoin's price dipped below $80,000 this week, while Ethereum's TheDAO was relaunched to enhance blockchain security.
The cryptocurrency market faced a notable downturn this week, highlighted by Bitcoin's drop below $80,000 and Ethereum's relaunch of TheDAO.
The week began with Bitcoin trading positively, reaching $90,000, but this trend reversed sharply midweek. On Thursday, Bitcoin fell from $88,000 to $83,000 following the U.S. market's opening.
Gold also saw fluctuations, initially peaking at $5,600 per ounce before retreating to $5,100, mirroring Bitcoin's volatility.
By January 30, Bitcoin's price had sunk further to $81,000, triggering liquidations of $1.7 billion. A brief recovery to $85,000 was followed by another steep decline, bringing Bitcoin down below $80,000 and testing the $75,000 mark for the first time since April 2025.
Overall, the forced liquidations exceeded $2.5 billion within 24 hours. Currently, Bitcoin is trading around $78,000, reflecting a 12% loss for the week.
Market analysts are divided on future price movements. Trader Kit Alan pointed to a potential double bottom near $74,000, while MN Trading's Michael van de Poppe noted that Bitcoin's RSI has dropped below 30, a possible signal of bearish trends.
"This is a signal that has triggered during the lows of bear markets in 2015, 2018, and 2022. And it is triggering again," van de Poppe remarked.
Other cryptocurrencies also fell, with Ethereum dropping 19% to $2,300, BNB down 13% to $750, and Solana decreasing 17% to $100. The total cryptocurrency market capitalization fell to $2.7 trillion, with Bitcoin holding a 57.5% dominance and Ethereum at 10.6%. The Crypto Fear and Greed Index has also declined to 14 points, the lowest since mid-December 2025.
In a significant development, Ethereum announced the relaunch of TheDAO, which had been compromised in a 2016 hack. The initiative, effective from December 29, aims to bolster blockchain security with funds from approximately 75,000 unclaimed ETH from the attack.
TheDAO's curators, including Vitalik Buterin, plan to allocate $13.5 million in grants for developers, with additional funds directed towards staking initiatives.
"The goal of TheDAO fund is to make Ethereum so secure that it is more profitable to store your savings in a DeFi protocol than in a bank," representatives stated.
This relaunch comes after TheDAO hack, where around 3.6 million ETH was stolen, leading to a controversial hard fork of Ethereum.
In other news, the Federal Reserve maintained its key interest rate between 3.5%-3.75% on January 28, a decision largely anticipated by analysts. Fed Chair Jerome Powell noted ongoing economic stability but acknowledged elevated inflation rates.
In a related political move, former President Donald Trump nominated Kevin Warsh as a potential successor to Powell, citing Warsh's qualifications and expressing confidence in his leadership.
"Markets generally see Warsh's potential return as a bearish signal for Bitcoin," noted 10x Research's Marcus Thielen.
Additionally, Tether launched USAT, a federally regulated stablecoin designed for the U.S. market, managed by Anchorage Digital Bank. Tether's financial report highlighted a net profit exceeding $10 billion in 2025, showcasing the company's strong reserve assets.
Moreover, Bitcoin's hashrate fell to 970 EH/s, the lowest since September 2025, largely due to severe winter storms affecting mining operations across the U.S. Analysts reported a significant drop in mining revenues, reflecting the struggles faced by mining companies in the current environment.
"The situation indicates extremely low profitability for mining companies under current price and difficulty conditions," Glassnode stated.
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