On January 29, the first cryptocurrency plummeted from $88,000 to $85,000, losing about 3.5%. This decline followed a drop in gold prices.

Just before the correction, the precious metal reached another historical high of $5,600 per ounce. At the time of writing, it is trading around $5,100.

The stock market is also experiencing a downturn: the S&P 500 index fell by 1.36% in one day, while the NASDAQ dropped by 1.8%.

Following Bitcoin, gold, and stocks, the rest of the crypto market has also turned red. All top-10 cryptocurrencies by market capitalization are showing declines.

Ethereum has fallen to $2,800, and Solana has dropped below $120.

The total market capitalization of cryptocurrencies has fallen below $3 trillion for the first time since April 2025.

Expert Observations

Analyst Michaël van de Poppe noted that Bitcoin's current valuation relative to gold has dropped to levels not seen since 2015.

I would be incredibly happy if I were taken back to 2015, to be buying #Bitcoin at the peak bottom then.

The current valuation of Bitcoin vs. Gold is lower than the bottom of that cycle.

Back then, $BTC crashed to $160.

After that period, a 100X happened.

The data tells the… pic.twitter.com/WvM6qX3qHn

— Michaël van de Poppe (@CryptoMichNL) January 29, 2026

“Back then, the first cryptocurrency crashed to $160. After that, it experienced a hundredfold increase. The data speaks for itself: Bitcoin is currently significantly undervalued,” he added.

Trader DaanCrypto pointed out the acceleration of the global liquidity index at the beginning of 2025. He stated that “significant movements” occurred across all asset classes except Bitcoin.

According to Glassnode, the realized profit and loss ratio (90DMA) has fallen from peak values around 19 in July 2025 to just 1.7 currently.

Chart of The Week: Realized Profit/Loss Ratio

The 90D-SMA Realized Profit/Loss Ratio has plummeted from a peak of 19 in July 2025 to just 1.7 today. This sharp decline signals a major shift in market demand and rising investor frustration.

Are we repeating the low-liquidity… https://t.co/hI66GUNekV

— glassnode (@glassnode) January 29, 2026

This sharp decline indicates a significant change in market demand and growing investor dissatisfaction, researchers explained.

Recall that Glassnode identified the level of $83,400 as the last support before Bitcoin's price crash.