On the final day of January 2026, bitcoin took another bruising blow, shedding 8.3% of its value against the greenback. The drop dragged the entire crypto economy down to roughly $2.6 trillion, a level last visited in April 2025. Over the past week, observers have floated several explanations for why bitcoin has struggled to find its footing.

Institutional and Miner Selloff

The first thing many point to is institutional selling from miners and exchange-traded funds (ETFs). Spot crypto ETF investors pulled nearly $1 billion in a single day on Jan. 30, including $528.3 million from bitcoin funds alone, ranking among the largest one-day outflows in months. That ETF retreat has been widely cited as a key bearish driver, helping explain bitcoin’s 13.6% weekly drop.

At the same time, miner selling has piled on additional pressure as signs of strain ripple through the mining sector. Glassnode reported on Jan. 30 that miners are “consistently sending BTC to exchanges, showing net outflows.” The analytics firm said this miner distribution “adds structural sell pressure, contributing to the ongoing price weakness.”

U.S.-Iran Conflict and Geopolitical Tensions

Escalating U.S.-Iran tensions in late January 2026 have pushed bitcoin firmly into the risk-on camp, sparking sell-offs as geopolitical nerves took over. As seen before, bitcoin slid below $80,000 today—bottoming at $75,555—after reports of intensifying U.S.-Iran strikes and explosions inside Iran, draining already thin weekend liquidity.

Reports indicate Trump’s Armada is nearly in position in the Middle East, while a senior Gulf official told Fox News that Saudi Arabia will not allow the U.S. to use its bases or airspace for an attack on Iran. Fox News also reported that the U.S. military warned Iran it would not tolerate any “unsafe” actions. Alongside this, the market fallout has not been limited to crypto, with precious metals like gold and silver also suppressed after steep losses during Friday’s trading session.

CLARITY Act Pause and Government Shutdown Threat

The looming U.S. government shutdown as of Jan. 31, 2026, has effectively put the Digital Asset Market Clarity Act (CLARITY Act) on ice—a bipartisan effort designed to set clear rules for digital assets, define Securities and Exchange Commission and Commodity Futures Trading Commission oversight, and bring order to market structure. The shutdown threat has drained legislative momentum and hobbled SEC operations, shrinking staff and freezing approvals.

Also read: ​​David Sacks and Eric Trump Weigh In at Davos as Senate Delay Stalls CLARITY Act

For many watchers, this has produced a regulatory deep freeze that clogs capital flows into crypto exchange-traded funds and slows broader adoption. That haze of uncertainty has darkened sentiment, pushed pro- crypto reforms further down the road, and fed market liquidations, weighing on bitcoin’s price as macro risks stack up.

​​Taken together, the sell pressure from institutions and miners, rising geopolitical stress, and a stalled regulatory backdrop have created a perfect storm for bitcoin at month’s end. With liquidity thinning, policy clarity delayed, and risk appetite on shaky footing, the market has found little relief as January closes. Until one of these forces eases—or a new catalyst enters the frame— bitcoin appears stuck wrestling with a heavy mix of macro and market headwinds.

• Why did bitcoin fall at the end of January 2026?
  Bitcoin declined as institutional and miner selling intensified, geopolitical tensions rose, and regulatory progress stalled.
• How did ETF outflows affect bitcoin’s price?
  Large withdrawals from spot bitcoin ETFs reduced demand and added downward pressure on prices.
• Did geopolitical tensions impact the crypto market?
  Yes, escalating U.S.-Iran tensions pushed bitcoin into risk-on territory, prompting sell-offs during thin weekend liquidity.
• What role did U.S. regulation play in the downturn?
  The threat of a U.S. government shutdown paused crypto legislation and slowed regulatory approvals, weighing on market sentiment.

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