The crypto market declined sharply on Thursday, with the total market capitalization falling by $44 billion to $2.95 trillion. Bitcoin (BTC) retreated to $88,127 after failing to breach the $90,000 resistance level, while altcoins posted mixed results led by River’s 27% decline.

Market Cap Pressure Follows Federal Reserve Decision

The total crypto market cap experienced sustained selling pressure despite the Federal Reserve maintaining its benchmark interest rate at 3.50–3.75% during its first 2026 policy meeting on January 28. The decision, characterized as “loosely neutral” by market observers, temporarily eased concerns about a more restrictive monetary policy shift.

Data from major tracking platforms shows the crypto market down today following a bearish weekend session. However, technical indicators suggest selling momentum has begun to ease, creating conditions for potential short-term stabilization. The $3.00 trillion threshold remains the immediate resistance level for broader market recovery.

Bitcoin Struggles Below Key Technical Zone

Bitcoin (BTC) currently trades near $88,127 after Wednesday’s sharp reversal from the $90,000 level. The cryptocurrency faces a critical technical zone, with the $86,987 support level—corresponding to the 23.6% Fibonacci Retracement—now serving as the next downside target.

Market structure data indicates heightened volatility across major exchanges. If bearish momentum persists and Bitcoin breaks below current support levels, the asset could test the $86,558 zone. Conversely, a move above $90,000 would invalidate the current bearish setup and potentially open a path toward $90,914.

Institutional Developments Amid Market Decline

Despite the broader crypto market downturn, institutional activity continues to expand. Fidelity Investments announced plans to launch the Fidelity Digital Dollar (FIDD), an Ethereum-based stablecoin targeting institutional and retail users. The move reflects growing competition in the $316 billion stablecoin sector.

Worldcoin (WLD) posted a 16% gain following a Forbes report indicating OpenAI is exploring a social network centered on “proof of personhood” technology. The early-stage project may incorporate biometric verification systems, including Apple Face ID and Worldcoin’s iris-scanning technology.

Read More:-Crypto Payments Hit Tipping Point as 39% of US Merchants Accept Digital Currency

Altcoins Post Divergent Performance

River (RIVER) recorded the steepest decline among major altcoins, falling 27% to $47. The asset broke below the $61 support level, signaling weakened short-term momentum. If current trends continue, RIVER could slide toward the $36 support zone, with further downside risk extending to $19.

Other altcoins displayed mixed performance as the crypto market cap contracted. Market participants are monitoring whether recent institutional announcements and easing selling pressure can support a near-term recovery across digital assets.

Outlook Remains Uncertain

The crypto market faces a period of uncertainty as investors assess macroeconomic conditions and technical levels. Recovery will depend on whether buying pressure returns and broader market sentiment improves. For now, clearing the $3.00 trillion barrier remains the primary focus for market participants tracking the total crypto market cap.

---

Disclaimer

This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets involve risk.This article is for educational purposes only and should not be considered financial advice. Trading cryptocurrencies and other financial instruments carries significant risk, and you could lose all your invested capital. Always do your own research, never invest more than you can afford to lose, and consider consulting with a licensed financial advisor before making investment decisions. Past performance of chart patterns does not guarantee future results.