Bitcoin Dumped Below $88K: Here Are the 2 Warning Signs Traders Missed

Bitcoin (BTC) slipped beneath $88,000 on January 25, 2026, following a pointy rise in Solana community charges and renewed whale exercise on Binance.

The transfer has drawn consideration as a result of comparable charge spikes on Solana preceded earlier Bitcoin pullbacks, elevating questions on whether or not excessive exercise on one chain can act as an early warning for broader market stress.

Solana Fees and Whale Deposits Set Stage For Drop

On-chain knowledge from January 24 and 25 showed two developments that coincided with Bitcoin’s drop from round $90,000. First, massive holders, or whales, moved roughly 2,000 BTC to the Binance change on January 21. According to Taha, such inflows have traditionally aligned with distribution or positioning forward of promoting, though they don’t assure fast draw back.

Second, and extra notably, the whole worth of transaction charges on the Solana community spiked to about $37.5 million on January 24.

This Solana charge occasion is nearly an identical to 1 that occurred on October 10, 2025. On that date, Solana charges additionally hit round $37 million whereas Bitcoin traded close to $114,000. The flagship cryptocurrency’s value then fell about 27% in the subsequent weeks.

Taha famous that these charge spikes sometimes mirror peak community exercise, typically pushed by automated buying and selling bots and high leverage in decentralized finance functions, which might sign overheated market circumstances.

“While rising charges might sound bullish at first look, Solana’s charge developments have typically signaled upcoming BTC corrections in the previous,” the analyst defined.

Price Action Reflects Controlled Selling and Leverage Flush

At the time of writing, BTC was buying and selling just below $88,000 after dipping as little as $86,000 in the previous 24 hours. It is down greater than 5% in the final week and almost 17% over the previous 12 months.

Bitcoin’s decline triggered dips for a number of altcoins, together with Sui (SUI), Arbitrum (ARB), Cardano (ADA), and Ethena (ENA). Ethereum (ETH) fell beneath $2,900, and Solana (SOL) skilled a quick drop of greater than 2.5%, indicating a widespread discount in threat throughout majors.

Research shared by XWIN Research Japan added macro context. The platform’s analysts (*2*) that rising U.S. political uncertainty, together with a better likelihood of a authorities shutdown earlier than the January 30 funding deadline, coincided with a thin-liquidity interval.

According to them, round $170 million in lengthy liquidations occurred inside 60 minutes, pushed largely by derivatives slightly than spot promoting. Meanwhile, open curiosity, close to $28.4 billion, stays effectively beneath late-2025 highs, suggesting leverage had already been diminished earlier than this transfer.

All the knowledge factors to a market reacting to concentrated exercise and leverage unwinds, with Solana’s charge spike as soon as once more showing alongside a BTC pullback slightly than appearing as a standalone trigger.

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