Risk-off sentiment in financial markets and continued gold strength could push Bitcoin lower by making it less appealing to traditional investors.
Bitcoin News
Bitcoin faces headwinds that could prevent a repeat of its early 2025 surge, according to 21Shares co-founder Ophelia Snyder. Market conditions remain uncertain as broader sentiment weighs on the largest cryptocurrency.
Snyder told reporters that factors driving current volatility are unlikely to be resolved soon. January typically brings renewed inflows into Bitcoin exchange-traded funds as investors adjust portfolios, but 2026 may differ from historical patterns.
The crypto peaked at $109,000 on Jan. 9, just before Donald Trump's inauguration, as traders anticipated pro-crypto policies. Bitcoin later reached $125,100 on Oct. 5 before entering a downtrend following the $19 billion liquidation event on Oct. 10.
Current trading shows Bitcoin at $91,150, down nearly 10% over 30 days. The decline prompted many participants to adopt a cautious outlook, following optimistic year-end expectations.
Snyder expressed long-term optimism despite near-term challenges. She views the recent correction as tied to general risk-off sentiment across broader markets rather than crypto-specific factors.
Several catalysts could drive Bitcoin higher, including expanded ETF access on major platforms, increased government adoption, and rising demand for value stores beyond gold. Risk-off sentiment in financial markets and continued gold strength could push Bitcoin lower by making it less appealing to traditional investors.
BitMine chair Tom Lee offered a contrasting view, predicting Bitcoin will reach new highs before January 2026 ends. Since 2013, Bitcoin has averaged 3.81% returns during January, according to CoinGlass data.
The cryptocurrency's performance next month depends heavily on broader market sentiment, Snyder said. Current low confidence levels make predicting January outcomes difficult as investors reassess positions amid ongoing volatility.
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