Bitcoin Slides to $75,555 as Sell Pressure, Geopolitics, and Regulation Weigh on Markets

Bitcoin extended its recent decline at the end of January 2026, falling 8.3% over the past 24 hours and 13.6% over the past week, briefly touching an intraday low of $75,555 on Bitstamp at around 1:30 p.m. ET.

The selloff dragged the total crypto market capitalization down to roughly $2.6 trillion, a level last seen in April 2025, as multiple headwinds converged to keep prices under pressure.

Below are three key factors that have contributed to bitcoin’s weakness.

1. Institutional and Miner Selling Intensifies

A major source of downside pressure has come from institutional outflows and miner distribution.

On January 30, spot crypto ETFs recorded nearly $1 billion in net outflows, including $528.3 million from bitcoin ETFs alone — one of the largest single-day withdrawals in months. The sharp ETF retreat has been widely cited as a primary driver behind bitcoin’s 13.6% weekly decline, removing a key source of marginal demand.

At the same time, miner selling has increased, adding structural pressure to the market. Glassnode reported that miners have been “consistently sending BTC to exchanges, showing net outflows,” a sign that operational stress within the mining sector may be forcing some participants to liquidate holdings.

According to the analytics firm, this ongoing miner distribution is contributing to sustained price weakness.

2. Rising U.S.–Iran Tensions Hit Risk Assets

Escalating geopolitical tensions between the United States and Iran have further weighed on bitcoin, pushing it firmly back into the risk-on asset category.

Late-January reports of intensified U.S.–Iran strikes and explosions inside Iran coincided with bitcoin slipping below $80,000, eventually bottoming at $75,555 amid thin weekend liquidity. Market sensitivity increased as reports emerged that U.S. naval forces were nearing position in the Middle East, while Saudi Arabia signaled it would not permit the use of its bases or airspace for an attack on Iran.

Fox News also reported that the U.S. military warned Iran against any “unsafe” actions, heightening uncertainty across global markets.

The impact was not limited to crypto. Gold and silver also faced selling pressure, retreating sharply during Friday’s session, underscoring a broader risk-off move rather than crypto-specific weakness alone.

3. Regulatory Uncertainty as CLARITY Act Stalls

Adding to the pressure is renewed regulatory uncertainty in the United States.

The looming U.S. government shutdown, set to begin on January 31, 2026, has effectively paused progress on the Digital Asset Market Clarity Act (CLARITY Act) — a bipartisan initiative aimed at defining market structure, clarifying SEC and CFTC oversight, and providing clearer rules for digital assets.

The shutdown threat has slowed legislative momentum and constrained regulatory agencies, with staffing reductions and approval freezes limiting progress on crypto-related initiatives. For market participants, this regulatory “deep freeze” has reduced confidence, slowed capital flows into crypto ETFs, and delayed broader institutional adoption.

The lack of clarity has added to already fragile sentiment, amplifying liquidations as macro and policy risks stack up.

Under Pressure Into Month-End

Taken together, institutional and miner selling, heightened geopolitical risk, and a stalled regulatory backdrop have created a difficult environment for bitcoin as January draws to a close.

With liquidity thinning, policy clarity delayed, and risk appetite on shaky footing, the market has found little relief. Until one of these pressures eases — or a new catalyst emerges — bitcoin appears likely to remain constrained by a heavy mix of macroeconomic and market-specific headwinds.

FAQ ❓

Why did bitcoin fall at the end of January 2026?

Bitcoin declined due to intensified institutional and miner selling, rising geopolitical tensions, and stalled U.S. regulatory progress.

How did ETF outflows affect bitcoin’s price?

Large withdrawals from spot bitcoin ETFs reduced demand and added significant downward pressure on prices.

Did geopolitical tensions impact the crypto market?

Yes. Escalating U.S.–Iran tensions pushed bitcoin into risk-off territory, triggering sell-offs during periods of thin liquidity.

What role did U.S. regulation play in the downturn?

The threat of a government shutdown paused crypto legislation and slowed regulatory approvals, weighing on investor confidence.