Bitcoin price continues to shake the crypto market, with experts warning of a potential drop to $88,000. Bitcoin’s price volatility has intensified following a sharp $5,000 dip within a single day, raising concerns across the financial landscape.
Bitcoin’s price fell below $96,000 on January 8 after a sudden sell-off, marking a critical point for the market. The Trump Dump Effect On Bitcoin now signals a bearish shift, with leading analysts suggesting a retest of $88K could be “highly probable.”
Bitcoin Price Faces Severe Pressure Amid Trump Impact
The Trump Dump Effect On Bitcoin has ignited a chain reaction in the market. Data showed BTC/USD sliding 1.7% in a day, extending a broader downward trend sparked by macroeconomic concerns in the U.S.
Spot market activity appears to be the driving force behind this price drop. On-chain analytics firm CryptoQuanthighlighted a surge in selling pressure on global exchange Binance.
Darkfost, a contributor at CryptoQuant, reported:
“The hourly Net Taker Volume on Binance turned sharply negative today, signaling a significant increase in selling pressure. It reached a peak of -$325M, the highest value in 2025.”
This spike coincided with the release of the ISM PMI and JOLTs Job Openings data, both of which painted a bleak picture for risk assets like Bitcoin.
Key Support Levels Threatened by the Trump Dump Effect On Bitcoin
Prominent trader Skew identified $95,000 as a critical short-term level, emphasizing the importance of liquidity near the $88K mark.
“Right around 1D lows ($92K – $88K), bid liquidity has been buffered up a decent amount with increased demand,” Skew noted.
“Spot flow is going to be vital the rest of this week & $95K will be pivotal.”
His analysis highlighted liquidity blocks further down the Binance order book, with significant buying interest closer to $88,000.
Is the Trump Dump Effect On Bitcoin Tied to Trump’s Inauguration?
The Trump Dump Effect On Bitcoin appears linked to political uncertainty. Trader Johnny suggested that Bitcoin could continue declining as the U.S. Presidential Inauguration nears.
“I think a move like this over the next 2-3 weeks going into the inauguration is highly probable,” he shared on X.
However, not all analysts are bearish. Josh Rager, a prominent market analyst, expressed optimism about a potential rebound before the week’s close.
“$BTC not overly concerned on today’s chop price action,” Rager commented.
“Could still see today close red and tomorrow, but a bounce by weekend as we’ve seen in this range.”
Demand Remains Strong Despite the Trump Dump Effect On Bitcoin
While the Trump Dump Effect On Bitcoin raises alarms, some market data suggests resilience. CryptoQuant CEO Ki Young Ju pointed out that long-term demand for BTC remains strong despite recent volatility.
In a thread on X, Ki explained the importance of the Apparent Demand Indicator, which measures BTC held for over a year compared to newly mined coins.
“Bitcoin apparent demand is back,” he stated.
This metric, coupled with decreasing sell-side pressure on exchanges, could limit the downside impact despite the Trump Dump Effect On Bitcoin.
The Trump Dump Effect On Bitcoin has sparked debate across the crypto community. With $95,000 acting as a pivotal level and $88,000 looming, traders are closely monitoring liquidity flows and spot market activity.
Key points to watch include:
Spot Flow Trends: Increased selling pressure could drive Bitcoin closer to $88,000.
Political Factors: Trump’s inauguration may further influence market sentiment.
Support Levels: $95K is seen as critical, while $88K could act as a strong support zone.
Despite the current bearish outlook, historical patterns suggest Bitcoin’s price could stabilize if demand remains strong.
Final Thoughts on the Trump Dump Effect On Bitcoin
The Trump Dump Effect On Bitcoin has undeniably rattled the market, with fears of an $88K retest dominating headlines. However, as experts highlight both potential rebounds and critical support levels, the coming weeks could prove pivotal for Bitcoin’s long-term trajectory.
While uncertainty lingers, the focus remains on market liquidity, macroeconomic data, and political developments shaping Bitcoin’s price movements.
The Trump Dump Effect On Bitcoin has underscored both the volatility and resilience of the crypto market, leaving traders watching key price zones closely. Will Bitcoin break further down, or is a strong rebound on the horizon? Stay updated with the latest developments in the cryptocurrency industry through The BIT Gazette
