Bitcoin (BTC), briefly, fell below the $88,000 level of price on Jan. 21 2026. Since that time, original crypto prices have rebounded from $88,000 to $89,000. According to CoinGecko data, BTC’s price has fallen 2.1% in the last 24 hoursSince January 2025, BTC has maintained some gains in monthly charts. BTC’s monthly chart has shown some progress, with a 0.6% increase in the past 30 days. We will discuss the reasons why Bitcoin’s (BTC), has experienced a recent price drop and whether we have entered bear territory.
Why is Bitcoin falling? Is Crypto Winter Coming?
Crypto market struggles since October 2025 Market liquidation was at its worst in October of 2025. This happened shortly after Bitcoin’s (BTC) new record-breaking high price of $126,080. It is likely that macroeconomic uncertainty was the cause of the crash. Investor sentiment was not boosted by the Federal Reserve’s cut of 25 basis points in interest rates that same month. In December 2025 the Fed cut rates once more, but this time it had little impact on Bitcoin’s (BTC) price.
Bitcoin (BTC), which was launched in 2008, saw a positive trend of price movement during January 2026. The price reached $97,000 on 15th Jan. The rally, however, was only short-lived and the prices dropped to their current levels. This latest downward trend was probably triggered when President Trump announced additional tariffs for countries that support Greenland’s autonomy. Investors are very concerned about the US-Greenland crisis. This development further reinforced the risk-averse attitude. Gold and silver reached yet another record high in 2026 while Bitcoin (BTC), which was a risky asset, experienced a price correction.
Please Read This: Trump’s Greenland Push Risks $8 Trillion Worth of US Bonds, Treasuries
Bitcoin (BTC), which is a cryptocurrency, could reverse its trend over the next weeks. Federal Reserve injects $55 billion over the next weeks. On Jan. 20, 2020, the first 8.3 billion dollars were injected. The Fed’s interventions often lead to an increase in the price of Bitcoin (BTC). In the next few weeks, we could observe a pattern similar to this.
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Source: watcher.guru
