Bitcoin plummeted over 6% to hit a session low of $83,405 on Thursday, January 29, marking its lowest price of the year amid a broader market rout that also halted gold's historic rally. The sharp sell-off in the Bitcoin price 2026 chart coincides with a high-stakes legislative showdown in Washington, where the U.S. Senate Agriculture Committee moved to advance the Digital Commodity Intermediaries Act (DCIA) while the Banking Committee stalled on the companion Digital Asset Market Clarity Act.
Crypto Market Structure Bill Senate Vote Sparks Volatility
The primary catalyst for today's digital asset sell-off appears to be the deepening legislative gridlock regarding the Crypto Market Structure Bill Senate negotiations. While the Senate Agriculture Committee, led by Chairman John Boozman (R-AR), successfully advanced the DCIA today to clarify the CFTC's jurisdiction, the victory was overshadowed by delays in the Senate Banking Committee.
Market participants reacted negatively to news that the Senate Banking Committee has indefinitely paused its markup of the partner legislation, the Digital Asset Market Clarity Act. This bifurcation threatens to leave the industry in a regulatory limbo, with the CFTC gaining mandate over digital commodities while the SEC's role remains aggressively undefined. "The market hates uncertainty, and the split between the Agriculture and Banking committees signals a prolonged battle over the definition of securities versus commodities," noted senior market analyst Sarah Jenkins.
BTC Under 85k Today: A Technical Breakdown
The move to BTC under 85k today shatters a key psychological support level that had held since late 2025. After failing to reclaim the $100,000 mark earlier in January, Bitcoin's technical structure weakened significantly. The breakdown below $85,000 exposes the asset to further downside risks, with analysts eyeing $75,000 as the next major demand zone.
Institutional outflows have accelerated, driven by the realization that the comprehensive regulatory framework promised after the passage of the GENIUS Act in 2025 may not materialize fully this year. The Bitcoin price analysis 2026 outlook has shifted from bullish accumulation to defensive hedging, as traders liquidate positions to cover margin calls in other sectors.
Gold Price Reversal News and Asset Rotation
Interestingly, the crypto crash occurred simultaneously with major gold price reversal news. After a parabolic run that saw gold spot prices briefly top $5,500 per ounce, the precious metal experienced a sharp correction today, suggesting a broad "cash-dash" liquidity event rather than a simple rotation from risk assets to safe havens.
Despite today's pullback, gold continues to massively outperform digital assets. The Bitcoin-to-Gold ratio has collapsed to multi-year lows, with one Bitcoin now purchasing roughly 15.8 ounces of gold, down from over 37 ounces just a year ago. This divergence highlights a decoupling where traditional safe havens are retaining value better than their digital counterparts during periods of macro stress.
Crypto Regulation Updates: The SEC vs. CFTC Divide
The core of the market's anxiety lies in the conflicting crypto regulation updates emerging from Capitol Hill. The DCIA, advanced today, would grant the CFTC exclusive jurisdiction over spot digital commodity transactions—a win for the industry. However, without the Banking Committee's parallel legislation to rein in the SEC's enforcement-heavy approach, crypto firms fear a fragmented compliance landscape.
Industry insiders suggest that major players like Coinbase may withdraw support for the omnibus package if the Banking Committee's provisions remain too restrictive or if the delay stretches into Q2 2026. This political maneuvering has exacerbated the financial market sell-off, as investors price in a longer timeline for institutional adoption.
What Lies Ahead for Bitcoin in 2026?
As the dust settles on this volatile trading session, the focus turns to the Senate's floor schedule. If the Agriculture and Banking committees can reconcile their differences and present a unified front, a relief rally could quickly reclaim the $90,000 level. However, if the deadlock persists, Bitcoin price 2026 projections may need to be revised further downward.
For now, caution is the watchword. With the Bitcoin price 2026 trajectory heavily dependent on legislative clarity, traders are advised to watch the $82,000 and $75,000 levels closely. The decoupling from gold and the sensitivity to D.C. headlines suggest that 2026 will be a year defined less by halving cycles and more by the gavel of the regulator.
