Криптовалюты обрушились на фоне рынка: биткоин и альткоины теряют позиции Translation: Headline: Cryptocurrencies Crash Amid Market Turmoil: Bitcoin and Altcoins Lose Ground

On January 20, the value of the leading cryptocurrency dropped below $88,000, leading to a sharp decline in altcoins.

Ethereum saw a decrease of 4.4%, falling to $2,973; BNB dropped 4% to $877; XRP fell 1.7% to $1.92; and Solana declined by 2.6%, landing at $128.

The plunge in digital assets coincided with a negative trend in the U.S. stock market, where the S&P 500 and Nasdaq Composite indices each lost over 2%, while the Dow Jones Industrial Average slipped by 1.76%. According to CNBC, this was the worst day for all three benchmarks since October.

Cryptocurrency companies also experienced pressure on their stock prices, with Coinbase shares falling by 5.6% and Circle by 7.5%. The stock of Strategy, the largest corporate holder of Bitcoin, decreased by 7.8%.

Analysts related the sell-off to leveraged position closures and a challenging macroeconomic environment. Vincent Liu, the investment director at Kronos Research, noted that a «risk-off» sentiment triggered cascading liquidations.

Within a single day, the volume of forced liquidations reached $929.66 million, of which $822 million pertained to long positions.

Peter Chang, head of research at Presto Research, identified Japan as the epicenter of the market turbulence, as a massive sell-off of government bonds initiated a chain reaction: the yield on 10-year bonds surged by 19 basis points in just two days, marking the steepest increase since 2022, which traders have dubbed «Japanic.»

The future trajectory of the situation hinges on the outcome of emergency elections scheduled for February 8. Chang believes the Bank of Japan may revert to quantitative easing.

Andri Fauzan Adziima, a leading researcher at Bitrue, advised monitoring Bitcoin’s support level in the range of $87,000 to $88,000. A firm close below these levels could lead the price to drop to $85,000.

It’s worth noting that in January, trading veteran Peter Brandt discovered a «death cross» on the chart of the first cryptocurrency, predicting a decline of the coin to $58,000.