Bitcoin faced a significant downturn on January 8, as its price dropped below $96,000 due to a large-scale sell-off. Analysts are now considering a further decline to $88,000 highly likely. This recent drop was triggered by the release of unfavorable U.S. macroeconomic data, including the ISM PMI and JOLTs Job Openings reports, which heightened selling pressure on exchanges such as Binance.
The heightened selling activity on Binance was indicated by a sharp decline in the hourly Net Taker Volume, reaching its most negative value in 2025 at -$325 million. Market participants now view $95,000 as a critical short-term price level. Popular trader Skew noted that bid liquidity has increased around the $92,000 to $88,000 range, suggesting that buyers are prepared to step in at these levels.
With the inauguration of U.S. President-Elect Donald Trump approaching, some traders predict a move to $88,000 within the next few weeks. However, others remain optimistic about a potential rebound, such as trader Josh Rager, who believes Bitcoin could recover by the weekend.
Overall, demand for Bitcoin remains strong despite the recent price fluctuations. CryptoQuant CEO Ki Young Ju highlighted a positive trend in “Apparent Demand,” which compares the number of mined Bitcoins to those held for at least a year, indicating persistent underlying demand which could support a bullish case for Bitcoin going forward.
