WMA: Bitcoin Drops to $88,000 as FUD Drives Market Down

Get the weekly summary of crypto market analysis, news, and forecasts!

This Week’s Summary

The crypto market ends the week with a market cap of $3 trillion.
Bitcoin’s trading value decreased to around $88,800.
Ethereum dropped nearly 12% to about $2,900.
XRP fell 8%, Solana 11%, and Dogecoin 11%.
Most altcoins are trading in the red, with a few exceptions.
The DeFi sector saw total value locked (TVL) decline to about $120 billion.

Crypto 19 – 25 January 2026: Market Analysis and Performance

The crypto market is slumping again after a brief, exhilarating bullish run. Following a week-long bloodbath, most cryptocurrencies trade in the red, some with double-digit losses. Sentiment is bleak as fear, uncertainty, and doubt push the market lower. Meanwhile, market capitalization has dropped over $220 billion in under seven days, now clinging to the $3 trillion level.

Bitcoin began declining last Sunday and hasn’t stopped since, losing over $7,000 in the meantime. The king of cryptocurrencies dropped to as low as $87,500 mid-week and has recovered only a little over $1,000 since. Massive liquidations and a rapid FUD spread across the market diminished BTC’s dominance and hopes of holding onto the hard-earned $95,000 level.

Ethereum dropped significantly over the past seven days, erasing all the gains it had made during the previous market rally. As a result, the second crypto in command broke below the $3,000 level and is now in a nearly 12% downward trend.

Altcoins & DeFi

Most altcoins are trading lower, though there are notable exceptions. XRP is down 8%, Solana 12%, Cardano 9%, Avalanche 12%, Sui 17%, Chainlink 12%, and TRON 6%. In contrast, Canton is up 40%. The memecoins saw some interesting trajectories. For instance, Dogecoin is down 11%, Shiba Inu is down 8%, and Pepecoin is down 13%.

The Metaverse sector has also seen notable movements in the past week. For instance, Axie Infinity is up 19%, The Sandbox is down 6%, and Floki is down 13%. Meanwhile, Decentraland is down 6%, Render is down 8%, and ApeCoin is down 18%. Stacks dropped by 18% and Virtuals by 13%. Meanwhile, Wemix increased by 15%.

The DeFi sector lost nearly $9.5 billion from the total value locked in protocols (TVL), bringing the total to about $120.11 billion.

Crypto Market Analysis – What’s in the News?

Ethereum’s Vitalik Buterin said he plans to return entirely to fully decentralized social media in 2026.

Next Week’s Crypto Market Forecast

The crypto market is deep in the red exactly one year after Donald Trump retook the US Presidency. The once crypto-friendly president did more harm than good during this time. For example, Bitcoin is down by 15% compared to its first day back in the White House. Meanwhile, most altcoins are down by over 80% compared to this time last year. Therefore, it is safe to conclude that crypto still relies heavily on rumors, FUD, and changes in international finances or US internal politics. This negative trend may continue next week and for months to come.

The post WMA: Bitcoin Drops to $88,000 as FUD Drives Market Down appeared first on Crypto Adventure.

Crypto Pulpit