Bitcoin Bearish Sentiment Climbs as BTC Price Slips Under $89K

Bitcoin's price fell below $89,000 on January 23, 2026, marking a significant drop from earlier highs. Prediction market users have raised the probability of Bitcoin crashing to $69,000 from 11.6% a week ago to 30% today. This shift reflects growing bearish sentiment as investors become more cautious.

The drop in Bitcoin's price has been attributed to a lack of interest from large players at current levels. Investors are adopting a defensive stance due to geopolitical uncertainties, particularly linked to U.S. President Donald Trump's proposed actions regarding Greenland and tariffs on European countries. This has led to increased volatility, with Bitcoin experiencing sharp drops and bounces within a short period.

Derivatives data also show a lack of new capital entering the market. Open interest has remained stuck between 240,000 and 265,000 BTC over the last ten days. This limited capital flow is influencing Bitcoin's choppy price action.

Why Did This Happen?

Geopolitical tensions, particularly around Greenland and tariff threats, have significantly impacted investor sentiment. These tensions have triggered a liquidation of $865 million in positions within 24 hours, adding to market volatility.

Investors are moving towards safer assets, with gold becoming a primary hedge against uncertainty. Gold prices have hit record highs, absorbing much of the attention and capital that would otherwise go to Bitcoin.

How Did Markets React?

The selloff in Bitcoin has also affected altcoins. Avalanche, for example, has dropped roughly 66% since September despite partnerships with major institutions. This indicates the broader market's unforgiving nature for altcoins.

Bitcoin's price drop has led to increased bearish sentiment. Myriad market users have raised their expectation of Bitcoin crashing to $69,000 from 22% to 30% in less than 24 hours. This increase from 11.6% last week highlights the shift in investor confidence.

Despite the recent drop, Bitcoin has shown a resilient structure since the start of 2026, with higher highs and higher lows. However, the price has struggled to maintain these gains due to the macroeconomic environment.

What Are Analysts Watching Next?

Analysts suggest that Bitcoin's current decline is not a regime change caused by panic but rather a period of risk repricing where Bitcoin is not the preferred asset. The market is watching for signs of increased demand from larger players to stabilize the price.

Technical indicators show that Bitcoin's failure to push above $90,000 has led to bearish momentum. The Relative Strength Index (RSI) is in oversold territory, indicating a potential short-term relief move.

Geopolitical tensions and macroeconomic uncertainty continue to influence Bitcoin's performance. The market is waiting for clearer signals of sustained easing in monetary policy and more consistent institutional inflows to determine the next direction.

Gold's performance as a safe-haven asset is also under observation. With gold hitting record highs, it is clear that investors are seeking alternatives to Bitcoin during times of uncertainty.

Investors are advised to monitor the next FOMC meeting and any developments in U.S. crypto legislation. These factors could influence Bitcoin's trajectory in the coming months.