- Most crypto tokens posted steep monthly losses of 20%–30%, showing persistent weakness.
- U.S. pension funds exposed to MicroStrategy have suffered heavy drawdowns, with the stock down roughly 67%.
- BTC is consolidating just above the $69,000–$70,000 support zone, an area many traders view as a high-conviction level for a potential bounce.
The cryptocurrency market closed out yet another difficult month, with most coins posting heavy losses. Performance data shows widespread declines, while Bitcoin’s price action offers a mix of caution and opportunity for traders.
Crypto Markets Weaken in January
A distribution chart of one-month returns reveals a stark picture: most cryptocurrencies fell between -20% and -30%, with the largest buckets in the -30% to -20% range and significant volume also in -20% to -10%.
Only a small handful of coins managed gains, clustered in the +10% to +30% range. The pattern confirms ongoing weakness across the altcoin space, where many projects continue to face selling pressure from token unlocks and reduced risk appetite.
Analysts and traders largely agree that in uncertain conditions, capital tends to flow toward Bitcoin and major large-cap coins rather than smaller altcoins. As one market observer noted, “If the market is weak and uncertain, all the random alts with massive unlocks will just keep bleeding lower and lower.”
Pension Funds Hit by MicroStrategy Decline
Meanwhile, institutional exposure to crypto also took a hit. Several U.S. public pension funds that invested in MicroStrategy, the company led by Michael Saylor and known for its large Bitcoin holdings, have seen sharp losses.
With Bitcoin’s price declining in recent months, MicroStrategy’s stock has dropped roughly 67%, erasing approximately $337 million in value across the funds. Ten of the eleven affected funds are down around 60% on their positions.
Bitcoin Technical Outlook: Support Near $69K–$70K
On the daily chart, Bitcoin is trading around $70,382 after a sharp pullback from highs above $110,000. The price has broken out of a multi-year triangle pattern to the upside, but the recent decline has brought it back toward the breakout zone.
Key Fibonacci retracement levels from the swing low to the all-time high are clearly marked with a key rebound to 0.5 Fib at $94,036 before downward continuation to 63,000 (full retracement).
The current price sits just above the psychologically important $70,000 level, with horizontal support visible near $69,000–$70,000. RSI (14) is at 33.56, approaching oversold territory but not yet extreme.
Traders are watching the area just above $69,000 closely. Many view it as a high-conviction buying zone, with tight stops below $69,000 offering favorable risk/reward for a potential corrective bounce.
Sentiment in trading circles remains constructive, reflecting optimism that the broader uptrend remains intact.
Looking Ahead
January delivered broad-based losses for crypto, sparing a few coins outside Bitcoin and select majors. While institutional holders of MicroStrategy shares nurse significant paper losses, Bitcoin’s price action near long-term support has kept some traders bullish.
The coming weeks will show whether buyers defend the $69,000–$70,000 zone or if further downside pressure emerges.
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