Bitcoin’s Fifth Straight Day of Declines: Risk-Off Mood Hammers Crypto Prices, Analysts Warn
Bitcoin just logged its fifth consecutive daily drop—a slide that's got traders eyeing the exits as risk-off sentiment sweeps across global markets.
Why the Pullback?
It's not just crypto feeling the heat. When traditional investors get spooked—think inflation jitters or geopolitical wobbles—they yank capital from risk assets first. Bitcoin, still wearing its 'digital gold' crown with a speculative edge, often takes an early hit. The sell-off feeds on itself: falling prices trigger stop-losses, which push prices lower, spooking more holders. Classic cascade.
The Analyst Angle
Market watchers point to macro winds shifting. Rising bond yields, a stronger dollar, or simply profit-taking after a run-up can all fuel the fire. Some call it a healthy correction; others see warning lights flashing. One thing's clear—volatility isn't leaving the crypto stage anytime soon. It's the price of admission for an asset class that still moves ten times faster than your average stock.
Looking Beyond the Dip
Long-term believers are watching for accumulation zones. History's shown—Bitcoin's deepest corrections often set the floor for its next leg up. The network hash rate holds strong, adoption metrics inch forward, and the core narrative around decentralized, scarce digital assets remains intact. Short-term pain for long-term gain? That's the bet.
So, is this the big unwind or just another shakeout? In crypto, the only certainty is the next headline—and the traders who'll overreact to it. After all, what's finance without a little panic to keep things interesting?
Bitcoin Sell-Off Shows Limited Stress as Spot Demand Strengthens
Despite the pullback, Hasn noted that market damage remains limited. Futures liquidations have stayed relatively low, suggesting the sell-off lacks the hallmarks of panic and may point instead to a period of consolidation.
Signs of underlying demand have also emerged. Data from SoSoValue shows US spot bitcoin exchange-traded funds posted their strongest week of net inflows since October, following a $20 billion futures liquidation event earlier in the month.
On-chain metrics echo that trend, with addresses holding between 1,000 and 10,000 BTC increasing by 28 over the past week, according to BGeometrics.
Meanwhile, CoinGlass data shows crypto futures open interest has dropped by about $9 billion from January highs, indicating reduced leverage and a greater reliance on spot buying.
GM fam!
BTC holding at $92,704 this sunny Monday in January. ETH at $3,213, SOL at $134, amid Bitcoin whales woke up in 2026 and moved billions in BTC.
Spot BTC ETFs see net outflow of (395) US$m on Jan 16.
Hyperliquid dominating: $4.60B TVL, $9.64B open interest,… pic.twitter.com/0B2MVhZQtz
Even so, Hasn said renewed “risk-off” forces are capping Bitcoin’s rebound. A key concern is political turmoil surrounding the US Federal Reserve.
Reports of a criminal investigation involving Fed Chair Jerome Powell have complicated leadership succession and raised questions about the central bank’s independence.
“This institutional friction has immediate consequences for market sentiment, as uncertainty regarding the Fed’s autonomy typically triggers a flight from dollar-denominated assets,” he said.
The situation has reignited debate over the future of the dollar’s role as a global SAFE haven. Analysts warn that perceived erosion of Fed autonomy could weaken confidence in US assets, potentially accelerating diversification toward alternatives.
“If investors lose faith in US government debt and the Fed’s autonomy, decentralized assets like Bitcoin and ‘hard’ assets like gold, which has already seen skyrocketing prices, become the logical hedge against institutional decay,” he said.
Arthur Hayes Says Bitcoin’s Next Rally Hinges on Dollar Liquidity in 2026
Arthur Hayes says Bitcoin could reach new all-time highs in 2026, arguing that its underperformance relative to gold and tech stocks in 2025 was driven by tight dollar liquidity rather than weakening fundamentals.
According to Hayes, Bitcoin needs an expanding supply of dollars to outperform, and without that monetary fuel, even strong adoption trends are not enough to push prices higher.
Optimism among long-term bulls also remains strong. Venture capitalist Tim Draper reiterated this week that 2026 would be a breakout year, repeating his long-standing $250,000 bitcoin price target.
Meanwhile, Abra CEO Bill Barhydt believes Bitcoin could benefit in 2026 as easing monetary policy injects fresh liquidity into global markets, reviving risk appetite after a prolonged period of tight financial conditions.
