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[Bitop Review] Market Concerns Persist as Trump Prepares to Take Office, Bitcoin Briefly Falls Below 90,000, Over 265,000 Traders Liquidated for $800 Million
$BTC
Bitcoin Briefly Falls Below 90,000

Due to the U.S. government's announcement of further restrictions on the export of AI chips and technology, chip stocks continued to decline yesterday. Bitcoin also plummeted from 95,000 to $89,256, but has since rebounded to $94,668 at the time of writing

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Over 265,000 Traders Liquidated for $800 Million

According to CoinGlass data, approximately $800 million in liquidations occurred across the network in the last 24 hours, with the bulk coming from Ethereum at $204 million and Bitcoin at $164 million; long positions accounted for $580 million while short positions amounted to $214 million, affecting over 265,000 traders.

Bitcoin’s current price of $90,000 presents a compelling opportunity for long-term investors, even as analysts warn of a potential dip below $70,000, according to Fundstrat Capital Chief Investment Officer Tom Lee.

In a January 13 interview with CNBC, Lee emphasized that Bitcoin’s current valuation is a good entry point for those looking to hold over the long term. “I don’t think anyone is going to lose money buying here at $90,000. If they’re trying to time this, maybe they get lucky, and it goes to $70,000,” Lee said, adding that Bitcoin is expected to be “one of the best-performing assets of the year.”

A Normal Correction in a Hyper-Volatile Asset

At the time of Lee’s comments, Bitcoin was trading at $91,662, down 15% from its all-time high. However, he described this dip as a “pretty normal correction” for a hyper-volatile asset like Bitcoin.

“We’re still early in this halving cycle,” Lee explained, referencing Bitcoin’s built-in mechanism to reduce new supply every four years. “This presents a big opportunity. I think Bitcoin is going to be one of the best-performing assets this year.”

Potential Scenarios: $70K Dip Before Rally

Fundstrat has outlined scenarios where Bitcoin could temporarily drop to $70,000 or even the $50,000 range before resuming its upward trajectory. “These levels aren’t new; they’re just where Bitcoin might touch before beginning to rally,” Lee noted.

Other analysts have echoed caution. Markus Thielen, founder of 10x Research, anticipates that ongoing inflation concerns could create headwinds for Bitcoin. He suggests the asset could fall as low as $69,000 if it breaches key resistance levels.

Key Dates to Watch

Lee highlighted January 15 as a critical date, as the Consumer Price Index (CPI) inflation data is set to be released. He advised investors to “ride out” any short-term volatility. Rising Treasury yields, a stronger U.S. dollar, and fears of Federal Reserve tightening have contributed to Bitcoin’s recent price correction, analysts have observed.

The Federal Reserve’s first interest rate decision of 2025 is scheduled for January 29, adding another layer of uncertainty to the crypto market in the short term.

Long-Term Optimism Remains

Despite short-term challenges, major asset managers like VanEck and Bitwise remain bullish, projecting Bitcoin to hit $180,000 to $200,000 by the end of 2025. These forecasts are bolstered by speculation that the U.S. government could establish a Bitcoin reserve, further legitimizing the asset.

Market Update

As of now, Bitcoin is trading at $94,650, up 5.4% from $89,800 in the last 11 hours, according to CoinGecko data. This marks the first time since November 19 that Bitcoin briefly dipped below $90,000 before rebounding.

Conclusion

While Bitcoin may experience further short-term volatility, industry experts like Tom Lee maintain that its current price offers a strong buying opportunity for long-term investors. With significant growth potential and the possibility of hitting $200,000 by 2025, Bitcoin’s path forward remains promising, even amid temporary corrections.

The post Bitcoin Could Dip to $70K, But Current Price a “Strong Entry Point,” Says Fundstrat appeared first on Baffic.