Crypto Markets Slip as U.S. Equities React to AI‑Spend Concerns
January 29, 2026 – Global markets opened lower on Thursday after the U.S. stock market posted modest declines. The sell‑off spilled over into digital assets, pulling the total crypto market value down nearly 5 % to roughly $2.96 trillion.
What happened in the equities world?
- Nasdaq Composite fell about 2.3 % while the S&P 500 lost roughly 1.5 % after the market opened.
- The dip was linked to growing apprehension over Microsoft’s announced increase in artificial‑intelligence spending. Although the software giant reported a 17 % rise in fourth‑quarter revenue, its cloud‑segment slowdown and the prospect of higher AI costs sent the stock down about 12 % in early trade.
- The broader tech sector echoed the move, dragging down related indices.
How the cryptocurrency market responded
| Asset | Price movement (24 h) | Approx. price |
|---|---|---|
| Bitcoin (BTC) | –5 % (dropped below $85,000) | $84,900‑$85,000 |
| Ethereum (ETH) | –6.4 % | around $2,800 |
| TRON (TRX) | Flat (only large‑cap outlier) | – |
| Total market cap | –5 % | $2.96 trillion |
The slide in crypto mirrored the equity sell‑off, with most top‑ten tokens posting losses between 4 % and 6 %. TRX was the lone large‑cap that held its value.
On‑chain sentiment
- Glassnode analysts noted that Bitcoin is hovering around a price zone where buying and selling pressure are roughly balanced. Their latest research points to “weak short‑term holder conditions,” implying that the market could see further downside if support levels break.
- The Crypto Fear & Greed Index remains in the “fear” region, reflecting heightened caution among traders after Wednesday’s rally.
Winners and losers among the top‑100 tokens
- Worldcoin (WLD) emerged as the biggest gainer, climbing more than 5 % after reports that OpenAI is evaluating a partnership with the biometric‑focused project.
- Avalanche (AVAX) led the losers, shedding about 8 % of its value, with Mantle (MNT) also posting notable declines.
Liquidations and market pressure
- Data from CoinGlass show that more than 200,000 accounts were liquidated in the past 24 hours, wiping out over $813 million in positions.
- Long positions dominated the liquidations, accounting for roughly $700 million of the total. Bitcoin alone saw $327 million in long liquidations, while Ethereum accounted for $134 million.
ETF flows and macro backdrop
- Spot Ethereum ETFs recorded net inflows of $28.1 million, bringing total assets under management to $18.22 billion (SoSoValue).
- In contrast, spot Bitcoin ETFs experienced net outflows of $19.6 million, leaving their total assets at $115.35 billion.
- The Federal Reserve paused its series of rate cuts, keeping the federal funds target range at 3.5 %–3.75 % following the January FOMC meeting. Chair Jerome Powell highlighted solid economic expansion and resilient consumer spending, signaling a cautious stance on monetary policy.
Other market moves
- While equities and crypto slipped, crude oil prices rose, and precious metals (gold and silver) retreated slightly after breaching fresh highs the previous day.
Key Takeaways
- Equity‑driven risk aversion spilled into crypto, prompting a broad‑based decline across major digital assets.
- AI‑spending fears at Microsoft—despite solid revenue growth—acted as the catalyst for the sell‑off, underscoring how macro‑tech news can affect crypto sentiment.
- On‑chain data suggests that short‑term holders remain vulnerable; a break of current support levels could trigger additional downside.
- Liquidity stress is evident, with over $800 million liquidated in a single day, predominantly long positions, highlighting the leveraged exposure of many traders.
- ETF flows diverge: Ethereum‑focused funds attracted fresh capital, while Bitcoin‑linked funds saw modest redemptions, hinting at a shifting risk appetite within the institutional crypto space.
- Macro environment remains mixed: a steady‑state Fed policy and strong U.S. economic indicators coexist with heightened caution across risk assets.
Investors should monitor upcoming earnings reports from other AI‑heavy tech firms, watch for further Fed guidance, and keep an eye on on‑chain metrics that could foreshadow additional volatility in the crypto market.
Source: https://thedefiant.io/news/markets/crypto-stock-market-down-microsoft-ai-fears
