Why Could Bitcoin Drop Below 88,000 Dollars?

The bitcoin is under significant downward pressure as markets react to American political uncertainties. A brutal drop of $5,000 in a single day suggests a possible test of $88,000 in the coming weeks, according to analysts.

A black day for Bitcoin amid macroeconomic concerns

On January 8, a wave of massive sell-offs shook the crypto market, causing bitcoin to plunge below $96,000. This correction occurs in a particularly tense context in the American markets, marked by the release of unfavorable economic data, notably the ISM PMI and JOLTs Job Openings indices. The Binance platform recorded a record negative net volume of -$325 million for 2025, reflecting exceptional selling pressure.

Analysts from CryptoQuant quickly raised the alarm, pointing to a “growing pressure” on the spot markets. The situation is even more concerning as sellers seem to have taken total control of the market, as evidenced by the massive accumulation of sell orders on major trading platforms.

The renowned trader Skew identifies the $95,000 level as crucial for the next developments. His analysis reveals a significant concentration of liquidity between $92,000 and $88,000, suggesting a possible stabilization at these levels if the correction continues.

“Just around the 1D lows ($92,000 to $88,000), the liquidity of offers has been significantly bolstered by increased demand“, he detailed in his latest post on X.

Trump’s shadow hangs over the crypto market

The short-term prospects for bitcoin seem closely tied to the American political context, particularly with the approach of Donald Trump’s inauguration. Analysts anticipate a period of increased volatility in the next 2 to 3 weeks, with a consensus forming around a possible test of $88,000.

However, some experts like Josh Rager remain optimistic, mentioning the possibility of a rebound as early as next weekend. This more positive outlook is notably based on on-chain data from CryptoQuant, which shows still strong underlying demand, as illustrated by the apparent demand indicator analyzed by Ki Young Ju, the CEO of the platform.

The selling pressure from exchanges also shows signs of easing, which could limit the extent of upcoming corrections. This technical data suggests that the market could find solid support before reaching the most pessimistic levels mentioned by some analysts.

Nevertheless, the situation remains delicate, and the coming days will be decisive in determining whether this “Trump dump” will actually materialize down to $88,000, or if the market will find the strength to rebound sooner than expected.