Bitcoin Price Drop Jan 2026: Failed $94,500 Breakout Triggers $465M Liquidation

The $94,500 ceiling remains unbroken. Bitcoin (BTC) slid to $91,530 during Asian trading hours on January 7, 2026, after its third failed attempt to break through the key resistance level in five weeks. This move has dragged the broader crypto market lower, erasing gains for several major altcoins.

Resistance Rejection and the $465M Liquidation Wave

According to CoinDesk, the sell-off followed a local high of $93,750. The decline reflects rising risk-off sentiment, echoed by a 0.32% drop in Nasdaq 100 futures. Bitcoin is now firmly back in the trading range seen throughout December.

Altcoin Bloodbath vs. Institutional Resilience

The altcoin market suffered even steeper losses. PENGU dropped 6.5%, while XRP fell 3.5%. Privacy coins like Zcash (ZEC) led the sector's decline with a 4.5% slump since midnight.

Despite the market volatility, institutional interest persists. Morgan Stanley has filed for an Ether Trust, following their push into Bitcoin and Solana ETFs. This move signals that long-term institutional strategies remain focused on infrastructure growth rather than short-term price fluctuations.