Bitcoin Extends Sell‑Off as Cautious Tone Takes Hold in Crypto Markets
January 8 – 2026 | By [Your Name]
Bitcoin’s price slipped modestly on Thursday, pushing the leading cryptocurrency back below the $92,000 mark and signalling that traders are tightening risk after a week of heightened volatility. The move dovetails with fresh U.S. labor‑market data that suggests a slowdown in hiring, prompting investors to reassess exposure to digital assets.
Market snapshot
| Asset | Price (approx.) | 24‑hour change | 7‑day change |
|---|---|---|---|
| Bitcoin (BTC) | $91,000 | –1.0 % | +2.8 % |
| Ethereum (ETH) | $3,090 | –1.9 % | +3.7 % |
| XRP | $2.15 | –2.5 % | +15 % |
| BNB | $885 | –1.4 % | — |
| Solana (SOL) | $136.6 | +0.6 % | — |
Overall market capitalisation settled around $3.18 trillion, a 1.1 % dip from the previous day, while the 24‑hour trading volume topped $125 billion, according to CoinGecko.
Macro backdrop: cooling labor market
U.S. job‑less‑claims data released early Thursday showed a slight rise to 208,000 applications, just under market expectations, indicating that while layoffs remain limited, hiring momentum is waning. The figures follow a sharper‑than‑anticipated decline in job openings for November and modest private‑sector payroll growth of 41,000 jobs in December (ADP). The confluence of these indicators points to a gradually decelerating economy, a factor that historically nudges investors toward safer‑haven assets and away from higher‑risk positions such as cryptocurrencies.
Liquidations and ETF flows
- Liquidations: Coinglass reported roughly $444 million of forced closures in the last 24 hours. Long positions were liquidated for about $381 million, while short positions accounted for $63 million. Bitcoin led the pack with roughly $134 million in liquidations, followed by Ethereum at $106 million.
- ETF activity: Spot Bitcoin ETFs recorded net outflows of $486 million on Jan 7, while Ethereum spot funds saw withdrawals of $98.5 million. XRP ETFs also registered net outflows of $40.8 million, whereas Solana ETFs bucked the trend with a modest $2 million inflow (SoSoValue).
These outflows suggest a short‑term appetite shift toward cash or non‑crypto assets amid uncertainty.
Altcoin landscape
- Gainers: World Liberty Financial (WLFI) rallied more than 10 % after news of a pending federal banking charter application. Other notable performers included Bittensor (TAO) up 8.3 % and privacy‑focused Monero (XMR) climbing 5.2 %.
- Losers: Zcash (ZEC) suffered the steepest decline among large‑cap tokens, shedding roughly 11.5 % after a governance dispute triggered exits of core developers. Pepe (PEPE) and Provenance Blockchain (HASH) also slipped, down about 10 % and 8 % respectively.
Analysis
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Risk aversion amid mixed macro data – The modest uptick in jobless claims, coupled with slowing hiring, has reinforced a cautious stance among investors. Crypto, still viewed as a high‑risk asset class, is vulnerable to such sentiment shifts, especially when the broader market is not providing a clear directional catalyst.
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Liquidity pressure – The $444 million of liquidations, dominated by long positions, underscores that many traders were caught on the wrong side of the recent down‑tick. The net outflows from Bitcoin and Ethereum spot ETFs further illustrate a willingness to free up capital rather than hold through volatility.
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Resilience on the weekly horizon – Despite the 24‑hour dip, both Bitcoin and Ethereum remain in positive territory over the past week, hinting that the sell‑off may be a short‑term correction rather than a sustained downtrend. Continued support from institutional products (e.g., spot ETFs) will be pivotal for longer‑term price stability.
- Altcoin dynamics driven by news – Tokens like WLFI demonstrate how regulatory developments can provide short‑term uplift, while governance disputes continue to weigh heavily on projects like Zcash. Market participants appear to be rewarding clear, actionable news, even in the broader context of caution.
Key takeaways
- Bitcoin slipped below $92 k, down 1 % in 24 h but still up nearly 3 % week‑over‑week.
- U.S. labor data shows a cooling job market, prompting a risk‑off bias.
- $444 million in crypto liquidations occurred, with longs bearing the brunt.
- Spot Bitcoin ETFs saw nearly half‑a‑billion dollars exit, indicating a short‑term cash‑outflow trend.
- Altcoin performance diverges: regulatory news can lift small caps, while governance turmoil drags large‑caps down.
Investors should keep an eye on upcoming macro releases—particularly employment and inflation reports—as well as any developments in crypto‑specific regulation, which together will likely dictate whether the current cautious posture persists or gives way to renewed buying interest.
Source: https://thedefiant.io/news/markets/bitcoin-extends-selloff-as-investors-turn-cautious
