At a Glance
- Bitcoin briefly dipped to $86,000 before climbing back to $87,800.
- Analysts warn that lower levels are still ahead, calling the current phase a “huge bear market.”
- Currency tensions and U.S. fiscal uncertainty add to the pressure on crypto.
Why it matters: The crypto winter shows no signs of easing, and investors face a tougher environment.
Bitcoin holders face pressure, fatigue, and doubt as the crypto winter has intensified since November. Crypto markets opened the week under pressure, with Bitcoin (BTC) briefly dipping toward $86,000 as risk-off sentiment weighed across the sector. The asset later clawed back some losses and traded around $87,800. However, market experts believe that BTC remains bearish and lower levels are still ahead.
Market Overview
The latest price action shows a brief pullback followed by a partial recovery. The dip to $86,000 was the lowest level not seen since mid-December 2025, according to analysts. The rebound to $87,800 suggests short-term resilience, but the broader trend remains downward. Traders continue to monitor daily swings, with volatility hovering near two-month highs.
Analyst Perspectives
Mr. Wall Street
Popular crypto analyst Mr. Wall Street said the market is not in a bull phase and that optimism about a rebound is premature. In his latest update, he explained that the plunge to a level not seen since mid-December 2025 did not mark a durable bottom. He framed current conditions as part of a “huge bear market.” Mr. Wall Street added that further downside remains ahead, pointing to “much lower targets” as the next stage for the leading crypto asset rather than a quick recovery.
Axel Adler Jr.
Another analyst, Axel Adler Jr., echoed a similar sentiment amid market strain. He said these are not easy times for holders, describing an environment shaped by “pressure, fatigue, doubt.” More interestingly, Adler argued that the crypto winter began in November and is not only ongoing but “intensifying.” He added:
“It is precisely during such periods that the gap forms between those who will survive the cycle and those who will forever remain in the crowd at the highs. Winter cleanses the market. It shakes out speculators, breaks illusions, and leaves only discipline. And therein lies its value.”
Currency Market Impact
One major trigger for the downtrend was renewed tension in currency markets. The New York Fed’s USD/JPY “rate check” hinted at sensitivity to a weaker yen, with 160 seen as an implicit warning level. Even though USD/JPY is still near two-month highs around 154, QCP Capital said positioning has become increasingly defensive as investors unwind short-yen trades to avoid being caught by possible intervention.
Political Risk
The asset manager also said U.S. political risk remains a major overhang as uncertainty builds around fiscal negotiations. House Republicans have moved forward with spending bills, while Senate Democrats have signaled they may block them. With government funding set to expire on January 30, QCP warned that failure to reach a bipartisan deal could trigger a partial shutdown. Polymarket is pricing roughly a three-quarters chance of a shutdown by January 31. In crypto, QCP said put skew and implied volatility have risen, and prices may “chop around” in the near term as volatility stays high and markets await clarity.
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Key Takeaways
- Bitcoin’s brief dip to $86,000 was the lowest level since mid-December 2025, but the asset recovered to $87,800.
- Analysts warn of a continued bear market and lower targets ahead.
- Currency tensions around USD/JPY and U.S. fiscal uncertainty add to market pressure.
- The crypto winter, intensifying since November, is reshaping the investor landscape.
