Bitcoin Faces Downside Risk Below $70,000 as Multiple Selling Pressures Mount in January
Bitcoin faces downside risk below $70,000 due to stablecoin outflows, a year-low Coinbase premium, and a mining hashrate collapse from a US ice storm.Summary
Bitcoin is facing significant downside risk, potentially falling below $70,000, driven by several mounting selling pressures observed in January 2026. First, the market cap of the top 12 stablecoins dropped by $2.24 billion in ten days, indicating capital is moving to fiat rather than accumulating in stablecoins, which reduces market liquidity and buying power. Second, the Coinbase Premium Index plunged to its lowest level in a year, signaling heightened selling pressure from US investors as Bitcoin trades at a discount on Coinbase.
Third, a severe US ice storm disrupted mining operations, causing the Bitcoin hashrate to drop sharply. This operational stress may force miners, who constitute about a third of global capacity, to sell their BTC holdings to cover fixed costs, further increasing selling volume. Finally, veteran trader Peter Brandt noted a bearish technical breakdown, suggesting that if Bitcoin fails to reclaim $93,000, it could target support levels as low as $66,883.
(Source：BeInCrypto)