Bitcoin Price Prediction: Why BTC Could Drop to $80k Soon

Highlights:

• Bitcoin is pushing lower after losing the $90k mark
• Correction could see BTC drop to $80k in the short term
• Macro issues, including a new trade war, are pushing Bitcoin lower

Bitcoin has slipped back below $90k after the recent rally that saw it hit $97k. This correction means that most of the momentum that Bitcoin had built earlier is gone, and bears could be coming back. At the time of writing, Bitcoin was trading at $89,497, down by 2.28% in the day. Even as the price goes down, Bitcoin trading volumes have shot up intraday. 

They are currently at $55.45 billion, up by 76.36% in the day. The surging volumes when the price is showing weakness go to show that panic selling could be taking over. It also means leveraged longs are being forced to liquidate, while shorts rise. Multiple factors support not only the intraday weakness, but also a continuation of weakness going into the foreseeable future. 

Global risk assets came under significant pressure on Tuesday as geopolitical tensions and trade-related policy rhetoric dominated sentiment. Major US equity indices extended losses from the previous session, with the S&P 500, Nasdaq and Dow Jones all in negative territory as… pic.twitter.com/m43Rab4fpZ

— PSG Wealth (@PSGWealth) January 21, 2026

This has created fears that the world economy could suffer significantly, and capital is now fleeing into risk-off assets. For assets like Bitcoin, which are high beta, investors see the tariff threat as a risk that could quickly erode wealth if tariffs come to pass. This explains why Bitcoin is falling below $90k at a time when BTC is making new highs and pushing towards $90k. If nothing comes out of the World Economic Forum in Davos, where Trump is expected to meet European leaders, then risk-on assets such as Bitcoin could fall even further in the short to medium term.

Mixed Messaging From Federal Reserve In December 2025 Affecting BTC

Bitcoin is also being affected by uncertainties in monetary policy in the US. While the US Federal Reserve cut interest rates by 0.25 basis points in December 2025, it was not unanimous. Some of the key players involved in the rate cut decision dissented to the decision, meaning that there may be no more rate cuts coming in the foreseeable future. This, at a time when geopolitics is increasingly weighing in on assets, could drive some investors away from risk-on assets such as Bitcoin in the short term.

Fed speakers this week were uniformly hawkish.

• Williams (voter): policy “well positioned” to stabilize labor market + inflation

• Musalem: little reason for near-term easing

• Kashkari (voter): doesn’t see impetus for January cut

• Bostic: still needs restrictive… pic.twitter.com/XAlFg8mCec

— Gabe Selby (@gxselby) January 18, 2026

Mixed Global Messaging On Regulations Affecting Bitcoin

The regulatory environment also remains mixed globally. While the US has taken significant steps on regulations, the same has not been replicated globally. For instance, the EU has introduced a new set of rules that could make cryptocurrency investments unattractive in the EU. The regulations are so unappealing that some exchanges have folded, while others are considering dropping EU customers.

Crazy EU regulations now we can’t do anything in web3 without giving our personal information this isn’t crypto anymore this is straight-up theft by the state pic.twitter.com/uFiFCHyWo8

— RON (@RonPull) January 16, 2026

Even in the US, issues remain. For instance, the much-awaited Clarity Act is likely to take longer to materialize after cryptocurrency industry players dropped their support. Such matters, when the broader environment is uncertain, could send capital away from Bitcoin and other cryptocurrencies. That said, a significant price drop is unlikely due to the growing institutional support of Bitcoin. 

BTC Could Drop to $80K as Key Support Weakens

Bitcoin bears continue to pile pressure, with the next key target being the $85,302 support. If bears are strong enough to push Bitcoin through this support, a correction to $80,621 could follow.

On the other hand, if bulls retake control and push Bitcoin back above $90k, a rally to $105,873 could follow in the short term. Of these two scenarios, a drop to $80,621 is more likely. This is because the macro environment continues to show weakness, and could see capital flee even more into risk-off assets.