Bitcoin Faces Downside Risk Below $70,000 as Multiple Selling Pressures Mount in January
Bitcoin encounters mounting promoting strain as January 2026 ends, together with a $2.24 billion drop in stablecoin market capitalization, a year-low Coinbase premium, and a pointy decline in mining hashrate as a result of a extreme US ice storm.
The mixed influence of those elements has prompted veteran dealer Peter Brandt to warn that Bitcoin may fall beneath $70,000 if these market pressures persist.
Stablecoin Exodus Signals Capital Flight From Crypto
The crypto market is dealing with a significant liquidity drop, as the market cap of the highest 12 stablecoins has fallen by $2.24 billion in simply 10 days, in line with Bitcoin’s 8% decline. According to market intelligence platform Santiment, this lower goes past typical profit-taking.
The knowledge point out a important problem for Bitcoin bulls. Rather than rotating capital into stablecoins to attend for higher entry factors, buyers are cashing out to fiat.
Stablecoins present important liquidity for crypto purchases. When their provide drops, the market’s potential to soak up promoting strain or help rebounds is diminished.
Historically, crypto recoveries have depended on the growth of the stablecoin market cap, signaling new capital getting into the area. The current decline means that short-term shopping for energy is shrinking.
Furthermore, Santiment defined that this withdrawal could possibly be as a result of cash shifting into gold and silver as buyers discover them extra enticing in the present atmosphere. The consequence of this transfer is that altcoins will suffer heavy losses.
Coinbase Premium Plunges Into Negative Territory
Bitcoin’s decline is compounded by the Coinbase Premium Index, which has fallen to its lowest degree in a yr, displaying heightened promoting strain from US buyers.
The Coinbase Premium tracks the value hole between Bitcoin on Coinbase Pro and the worldwide common, providing perception into US institutional and retail sentiment.
Data from Coinglass reveals the premium went deep into unfavorable territory from January 12 to 26, 2026, with readings beneath -0.05% and dropping to almost -0.15% after January 21. CryptoQuant data exhibits that the 7-day common Coinbase Premium Index has fallen to its lowest degree because the starting of the yr.
The unfavorable premium means Bitcoin is buying and selling at a reduction on Coinbase, reflecting stronger promoting by US individuals.
Ice Storm Triggers Mining Crisis and Hashrate Collapse
A extreme US ice storm has delivered one other blow to Bitcoin, inflicting hashrate to drop from 1.133 ZH/s to 690 EH/s over two days. The US makes up a few third of Bitcoin’s world mining capability, with key operations in Texas run by corporations such as MARA and Foundry Digital.
Analyst Darkfost from CryptoQuant reviews that MARA’s hashrate fell by 4 instances in 3 days in comparison with its month-to-month common. The excessive chilly disrupted energy grids, resulting in load cuts and better electrical energy prices. These situations pressured miners to close down operations and keep away from unsustainable prices.
If mining corporations endure income shortfalls, miners is perhaps pressured to promote their holdings to cowl ongoing bills, including to the strain of sale whereas liquidity stays tight.
“This interval of stress may even set off some BTC promoting if the storm had been to persist, as miners should must cowl mounted working prices whereas ready for situations to normalize.” – Analyst Darkfost predicted.
Technical Breakdown Points to Further Downside
Veteran dealer Peter Brandt has flagged a bearish technical sign that matches the general downward pattern. Brandt notes that Bitcoin has damaged down from a bear channel on the each day chart, transferring beneath a rising channel established since late December 2025.
Brandt’s analysis suggests Bitcoin should get well above $93,000 to negate the bearish outlook. If it fails, the value may decline towards $81,833 and even $66,883.
This technical forecast provides weight to the bearish narrative seen in on-chain metrics and broader market construction. With liquidity draining, sturdy U.S. promoting, and pressured miners, Bitcoin lacks the help to reclaim key resistance ranges. The mixture of technical and basic elements makes a near-term restoration troublesome.
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