January 21 News, as the selling pressure in the cryptocurrency market continues to intensify, Bitcoin has fallen from near the $100,000 high and dropped below $90,000, with most mainstream altcoins also weakening. Tom Lee from Bitmine and Fundstrat warned that this correction might just be a prelude to a larger downtrend cycle in 2026, but if Bitcoin reaches a new all-time high within the year, a structural rebound could be expected by the end of the year.
In Wilfred Frost’s latest podcast interview, Tom Lee pointed out that the current market environment is highly similar to 2025, with high leverage liquidations, risk assets under pressure, and macro uncertainties stacking up, potentially causing most of 2026 to be in a “painful decline” zone. However, he also emphasized that if Bitcoin can break through previous highs, it would mean the market has fully digested the deleveraging shock from October last year, when a large number of leveraged positions were rapidly liquidated, causing intense turbulence across the entire crypto industry.
Judging from the price range, Fundstrat’s earlier warning was that Bitcoin might retest the $60,000 to $65,000 area, which is seen as a deep correction within a bull market rather than a long-term trend reversal. Tom Lee believes that similar declines often occur before the next rally, and for long-term investors, it could be an opportunity to reposition.
Behind this round of cryptocurrency plunge, macro factors have also played a key role. The U.S. Supreme Court failed to deliver a clear ruling on Trump’s tariff policies, triggering concentrated market pricing on trade and policy uncertainties; meanwhile, escalating tariff tensions between the U.S. and the EU have added additional pressure on risk assets. Trump recently signaled a potential easing on related issues, but short-term market doubts remain difficult to fully dispel.
Additionally, the Bank of Japan hinted that it will further raise interest rates in 2026 to address yen depreciation and inflation risks, which has pushed global liquidity expectations to tighten, exerting pressure on high-volatility assets like Bitcoin. Despite increased short-term volatility, trading data on Gate shows that some funds are repositioning at low levels, reflecting an early bet on a year-end rebound narrative. For investors focused on Bitcoin price forecasts and crypto market cycles, 2026 is likely to be a critical transition year of “decline first, then rise.”
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitcoin Depot suspends operations in Connecticut as Bitcoin ATMs face further compliance issues
Connecticut has suspended Bitcoin Depot's money transmitter license and required the company to halt its Bitcoin ATM operations due to multiple violations regarding fees and information disclosure. The company's stock price has declined, and it faces fines and compliance pressure, which may impact stricter regulatory oversight across the entire industry.
GateNews2m ago
Bitcoin Depot Flags Control 'Weaknesses' as Connecticut Halts Its Operations
In brief
Connecticut has suspended Bitcoin Depot's state money transfer license, without which it cannot run its kiosks.
Regulators said some users were overcharged, while those that fell to scams weren’t fully refunded.
Observers said the order could mark a tougher compliance test for th
Decrypt4m ago
Bitcoin inflows to exchanges reach a new high, with $75,000 becoming a key resistance level
As the crypto market rebounds, on-chain capital inflows to Bitcoin have significantly increased, reaching the highest levels, indicating the market may face selling pressure. Meanwhile, prices are approaching short-term resistance zones, and macro interest rate policies remain a key factor. Market expectations for rate cuts have cooled, which could constrain risk assets.
GateNews7m ago
Strategy Invests Additional $1.57 Billion to Purchase 22,000 BTC, 239,000 BTC Away from Million BTC Target
Michael Saylor announced that MicroStrategy purchased 22,337 bitcoins at an average price of $70,194, bringing total holdings to 761,068 BTC with a book value exceeding $57.6 billion. This move demonstrates a positive effect in cost averaging, and the company plans to reach its goal of 1 million bitcoins by the end of 2026. Saylor's confidence in bitcoin remains unwavering, with market response serving as an important indicator.
動區BlockTempo19m ago
Gate Crazy Wednesday is now live! Complete tasks to win FOGO and Leica cameras. USDT financial products offer up to 100% APY. Stake BTC, ETH, SOL and earn up to 16% mining APY.
Gate News bot message: According to Gate's official announcement on March 18, 2026
Gate launches the "Crazy Wednesday" activity, running from March 18, 2026 at 14:00 to March 22 at 16:00 (UTC+8). Users can unlock blind boxes by completing multiple tasks including flash swaps, spot trading, contract trading, and deposits. Prizes include FOGO tokens, lucky bags, and Leica cameras, with a 100% win rate.
During the event, the platform offers a USDT 14-day fixed wealth management product with 8% annualized yield. New users can enjoy a 3-day 100% annualized yield bonus. Additionally, surplus asset wealth management products are available including 0G, APT, AZTEC, and IDOS, with maximum annualized yields reaching 300%. Users who stake BTC, ETH, and SOL can enjoy up to 16% annualized yield, with SOL staking of 0-1 eligible for 16% annualized returns. All rewards will be distributed within 14 business days after the event concludes.
GateAnnouncement28m ago
