Bitcoin Under Pressure: Analyst Warns of Potential Drop Below $70,000
đ„ Key Takeaways
- Bitcoin is facing significant downside risk as January 2026 draws to a close.
- Selling pressure is mounting due to several factors, including a $2.24 billion decline in stablecoin market capitalization.
- The Coinbase premium has hit a year-low, indicating weakening institutional demand.
- A severe US ice storm has led to a sharp decrease in Bitcoin mining hashrate.
- Veteran trader Peter Brandt has warned that Bitcoin may fall below $70,000.
Bitcoin’s January Jitters: Mounting Selling Pressure
Bitcoin is currently navigating a period of heightened volatility and potential downside risk, according to recent market analysis. As January 2026 progresses, the cryptocurrency is encountering significant selling pressure from a confluence of factors, raising concerns among investors and analysts alike.
Stablecoin Outflows Weigh on Bitcoin
One of the primary contributors to the bearish sentiment is a substantial decrease in the stablecoin market capitalization. A staggering $2.24 billion has flowed out of stablecoins, suggesting that investors are reducing their exposure to the crypto market and potentially converting their holdings back into fiat currencies. This outflow directly impacts Bitcoin, as stablecoins often serve as a crucial on-ramp for new investments into the leading cryptocurrency.
Coinbase Premium Plummets
Adding to the pressure, the Coinbase premium, a key indicator of institutional demand, has plummeted to a year-low. The Coinbase premium reflects the price difference between Bitcoin on Coinbase, a platform heavily used by institutional investors, and other exchanges. A lower premium signifies weakening institutional buying interest, further exacerbating the downward trend.
Ice Storm Cripples Mining Hashrate
Compounding the challenges, a severe ice storm in the United States has significantly disrupted Bitcoin mining operations. The extreme weather conditions have led to power outages and operational difficulties for miners, resulting in a sharp decline in the Bitcoin mining hashrate. A reduced hashrate can potentially slow down transaction processing times and increase network vulnerability, adding to the overall negative sentiment surrounding Bitcoin.
Veteran Trader Issues Warning
The combined impact of these factors has prompted veteran trader Peter Brandt to issue a warning, suggesting that Bitcoin could potentially fall below the critical $70,000 level. Brandt’s analysis carries weight in the crypto community, and his caution underscores the severity of the current market conditions. While a drop below $70,000 is not guaranteed, the mounting selling pressure warrants careful monitoring and risk management strategies for investors.