Bitcoin Drops to Yearly Lows Amid U.S. Announcement of Project Crypto Legislation
By Anuron Mitra, Investing.com
Published: January 29, 2026 | Updated: January 29, 2026, 2:57 PM
Bitcoin slid to its lowest levels of the year on Thursday as a broader selloff gripped Wall Street, compounded by a sharp reversal in soaring gold prices. Market participants in the cryptocurrency space closely monitored a significant announcement regarding U.S. crypto legislation.
Bitcoin’s Decline
The world’s leading cryptocurrency was last trading 6.2% lower at $83,991.30 as of 2:55 PM ET (19:55 GMT) Thursday, having touched a session low of $83,405.70—its weakest level so far in 2026. Over the past week, Bitcoin had been rangebound between $86,000 and $89,000, resulting in a modest gain of just 1% since the start of the year.
The recent price slide reflects growing uncertainty among investors, who are weighing the implications of upcoming U.S. regulatory measures against the backdrop of broader market volatility.
Gold Surges and Retreats
In contrast to Bitcoin’s slump, gold bullion had initially surged past the $5,500 per ounce mark for the first time on Thursday, driven by safe-haven demand amid geopolitical tensions and Federal Reserve rate policy expectations. However, gold prices subsequently retreated as investors paused following the rapid rally.
U.S. Regulatory Focus: Project Crypto
At the center of market attention was a joint press conference held by the chairs of two key U.S. financial regulatory bodies. SEC Chair Paul Atkins and CFTC Chair Michael Selig unveiled a coordinated initiative named Project Crypto, designed to gear both agencies for prompt, coordinated implementation of crypto-related legislation once passed by Congress.
The centerpiece of this legislative framework is the Clarity Act, a landmark bill aimed at clarifying the regulatory landscape for digital assets. Project Crypto’s objective is to ensure that, upon enactment, regulatory bodies can faithfully and thoughtfully execute the law, minimizing market friction and harmonizing standards and definitions to build confidence within financial markets.
Atkins emphasized, “We have designed Project Crypto such that when Congress acts, our agencies are ready to implement any new legislation faithfully and thoughtfully. Moving forward, that means deploying every tool at our disposal to reduce friction, to harmonize standards and definitions where appropriate, and to equip markets with confidence as Congress completes its vital work.”
The announcement follows reports that the White House plans to convene senior executives from the banking and cryptocurrency industries next week to attempt to break a legislative deadlock on crypto regulation.
Further legislative progress includes a bill advanced by a U.S. agriculture committee, which would grant expanded authority to the Commodity Futures Trading Commission (CFTC) to regulate digital commodities and enhance consumer protections. Known as the Digital Commodity Intermediaries Act, this bill complements the Clarity Act’s provisions.
Altcoins Also Bear the Brunt
The downturn extended beyond Bitcoin to major altcoins amid a broader risk-off environment:
- Ethereum (ETH) dropped by 7.1%, falling to $2,803.14.
- XRP dipped 6.7% to $1.79.
- Solana (SOL) and Cardano (ADA) each declined more than 7%.
- Among meme tokens, Dogecoin (DOGE) fell 7.7%, while the controversial $TRUMP token declined 4.6%.
Market Summary
- Bitcoin (BTC): -6.2%, $83,991.30
- Ethereum (ETH): -7.1%, $2,803.14
- XRP: -6.7%, $1.79
- Gold: Initially surged past $5,500/oz then gave back gains
- U.S. Equities: Widespread declines reported alongside heightened volatility
The crypto sector’s underperformance underscores how regulatory developments remain a key factor influencing investor sentiment and asset prices in digital currency markets.
Contributors: Ayushman Ojha and Vahid Karaahmetovic
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