On the first trading day of 2026, the cryptocurrency market experienced a severe shakeout in the middle of the night. Over 100,000 investors watched their assets shrink within just a few hours, and the market panic quickly spread. Bitcoin plummeted from $89,000 to around $87,000, and although there was a slight rebound afterward, the scare was already deep enough.

Data best illustrates the issue. The total contract liquidation volume across the entire network within 24 hours reached $228 million, with over 160,000 people forcibly liquidated. Long positions suffered $157 million in losses, and shorts also fared poorly, losing $71 million. This opening was quite painful, especially considering Bitcoin has already fallen nearly 30% from its $126,000 all-time high last October. The once-hot topic of the "crypto winter" is beginning to heat up again in the market.

Let's review the broader context. Since reaching a new high last October, Bitcoin has been under pressure. In December 2025 alone, it dropped over 22%, marking the worst monthly performance since December 2018. For the entire year of 2025, Bitcoin declined by over 5%, breaking the two-year streak of gains. This trend is increasingly linked to the stock market, and the risk asset nature of cryptocurrencies is becoming more apparent.

Where is the problem? The macroeconomic environment is complex, market liquidity is shrinking, and investors' risk appetite has decreased. Below the critical level of $90,000, Bitcoin cannot find reasons to rally further. The only bullish factor currently expected is the upcoming rate-cut cycle stimulating risk assets. But here’s the irony: the Federal Reserve cut interest rates in September, October, and December last year, yet Bitcoin has actually fallen by 24% since the September rate hike meeting. The rate-cut card seems to have lost its effectiveness.