Bitcoin investors are facing growing pressure and uncertainty as the market downturn deepens, with some experts saying the recent lows may not mark the end of the decline.
Crypto markets started the week on the back foot, with Bitcoin briefly sliding toward $86,000 as risk off sentiment spread across the sector. The price later recovered slightly and is trading near $87,800, though analysts remain cautious.
Analysts See Ongoing Bear Market
Well known analyst Mr. Wall Street said Bitcoin is not in a bull market and that expectations of a quick rebound are premature. He argued that the drop to levels last seen in mid December 2025 did not establish a lasting bottom and described current conditions as part of a large scale bear market.
According to him, further downside is likely, with much lower price targets ahead rather than a rapid recovery.
Analyst Axel Adler Jr. shared a similar view, saying the current environment is difficult for holders and marked by pressure, exhaustion, and doubt. He believes the crypto winter began in November and is continuing to intensify. Adler added that such periods tend to separate disciplined participants from late cycle speculators, ultimately resetting the market.
Defensive Positioning Takes Hold
The broader selloff has been fueled by rising stress in currency markets after a New York Fed signal suggested concern over a weaker yen, with 160 seen as a warning level for USD/JPY. Although the pair remains near 154, investors have started unwinding short yen positions to avoid potential intervention.
Political uncertainty in the United States is also weighing on sentiment. With government funding set to expire on January 30, tensions between House Republicans and Senate Democrats have raised the risk of a partial shutdown. Polymarket currently assigns a high probability to that outcome.
In crypto markets, defensive positioning is growing. Options data shows rising implied volatility and stronger demand for downside protection, with analysts expecting choppy price action until clearer signals emerge.
