Bitcoin Plunges Toward Post-Election Lows—Is This the Bear Market Everyone Feared?

Bitcoin's price is sliding—hard. The digital asset is testing levels not seen since the last election cycle, sparking fresh panic across crypto markets.

The Fear Is Back

Traders are dumping positions. Sentiment is flipping from greedy to fearful almost overnight. Every minor rally gets sold into, a classic sign of weakening conviction.

Reading the Charts

Technical analysts point to broken support levels. The momentum indicators are flashing red. It’s not just a dip; it’s a trend reversal that has everyone checking their portfolios twice.

What’s Driving the Sell-Off?

Macro fears are clashing with crypto-specific jitters. Rising interest rates, regulatory uncertainty, and that old favorite—liquidity drying up. The usual suspects are lining up for a perfect storm.

The Institutional Dilemma

Big money entered during the bull run. Now they’re facing their first real crypto winter. Will they hold, or will they fold? Their next move could dictate the market’s direction for months.

A Silver Lining?

History shows these brutal corrections often create the strongest foundations for the next leg up. The weak hands get shaken out. The long-term believers get a chance to accumulate. It’s the cycle’s brutal, yet effective, cleansing mechanism.

For now, the bears are in control. The only thing growing faster than the fear is the list of excuses from fund managers who swore this time was different—proving once again that in finance, the only free lunch is the one you bring yourself.

Key opinion leaders push the bear narrative

Key opinion leaders are on the front line with the fear sentiments.  Gracy Chen, the chief executive of crypto exchange Bitget, warns that Bitcoin’s price could reach $50,000. According to him, there will be another 40% Bitcoin price crash, bringing its market cap to $1 trillion.

Binance founder Changpeng “CZ” Zhao has also come out to say that he’s less confident about Bitcoin. According to him, there will be very high volatility

“A couple of weeks ago, I was pretty positive about the bitcoin super cycle, but right now, given all the fud [fear, uncertainty, and doubt] and all the emotions that have been stirred up in the community, I’m less confident about it now, to be frank,” he stated.

Despite being blamed for the coin’s crash, the Billionaire has no change of heart. The only green light he has given is that a Bitcoin “super cycle”, which causes the market to break its historic dependence on a four-year cycle centered around Bitcoin’s halving system of supply cuts, makes the coin stable. However, he gave it a 50% chance of happening.

Ark Invest chief executive Cathie Wood blamed Bitcoin’s recent weakness on “a Binance software glitch.” Star Xu, the founder of rival exchange OKX, also suggested that the record liquidation cascade was triggered by a Binance stablecoin yield campaign and caused “real and lasting damage to the industry.”

In response, Changpeng Zhao said, “The more fud you kick up and the more you get the community all riled up, it does have negative effects. 

Just be careful of the 50k BTC your targeting

Potential bottom for now, bull trap then to the real bottom pic.twitter.com/KLSoHoLLQ1

— Adam 🌬️ (@Crypto_Adamantt) January 31, 2026

Investors who have predicted market crashes also say that the 50k level is possible. “There is no organic use case reason for Bitcoin to slow or stop its descent,”  Michael Burry, the Big Short movie investor known for predicting the 2008 financial crisis, said.

Bitcoin crash fears result in ETF outflows

Bitcoin crash fears have also reflected on the ETFs. According to data from SoSoValue, Bitcoin ETF assets have fallen below $100 billion since April 2025. It’s a major slide from the $168 billion peak in October. Fidelity’s fund saw a massive $148.7 million exit, while ARK’s ARKB posted $62.5 million in outflows. Grayscale’s GBTC also saw a $56.6 million exit, and Bitwise’s BITB recorded $23.4 million in outflows. 

BlackRock was the only major player to buck the trend, bringing in $60 million in new investments. With nearly $1.3 billion leaving crypto ETFs so far this year, professional traders are watching closely to see if this is a temporary cooling-off period or a deeper trend.

As the dust settles, Bitcoin is trading at $74,990, after a volatile 24-hour period that saw it swing from a low of $72,897 to nearly $79,000. Overall, the top crypto coins have all recorded double-digit losses of up to 25% in the last 7 days. The total market cap is sitting at $2.63 trillion, which is a 0.67% decline.

According to analysts from QCP, price action is still fragile. Momentum is still bearish, and any attempts to MOVE higher are limited by recent resistance levels. As such, selectively managing risk on the downside is still prudent.

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