Bitcoin Price Declines for Fifth Consecutive Day as Cautious Sentiment Pressures Values: Analyst

Bitcoin has declined for the fifth consecutive session, retreating from its peak levels since November as it struggles to maintain its position above the $92,000 threshold.

Key Takeaways:

• Bitcoin has dropped for a fifth day due to profit-taking and increasing political and macroeconomic uncertainties.
• The retreat appears orderly, characterized by low liquidations, decreasing leverage, and renewed demand from spot ETFs and large investors.
• Persistent worries regarding the Federal Reserve’s independence are bolstering risk-averse sentiment.

According to Samer Hasn, a senior market analyst at XS.com, this downturn reflects a combination of profit-taking and a wider shift towards risk aversion caused by political and macroeconomic uncertainties.

In a note shared with Cryptonews.com, Hasn mentioned that traders are reacting to a sudden rise in political risks in the US, along with escalating geopolitical and trade tensions.

Bitcoin Sell-Off Displays Limited Strain as Spot Demand Increases

Despite the decline, Hasn pointed out that the damage to the market remains minimal. Liquidations in the futures market have remained relatively low, indicating that the sell-off does not exhibit signs of panic and may instead signal a phase of consolidation.

Indicators of underlying demand have also surfaced. Data from SoSoValue indicates that US spot Bitcoin exchange-traded funds experienced their most substantial week of net inflows since October, following a $20 billion futures liquidation earlier in the month.

On-chain metrics support this trend, with addresses holding between 1,000 and 10,000 BTC increasing by 28 over the past week, according to BGeometrics.

Furthermore, CoinGlass data reveals that crypto futures open interest has declined by approximately $9 billion from January’s highs, suggesting reduced leverage and a greater dependence on spot purchasing.

GM fam!
BTC is holding at $92,704 this sunny Monday in January. ETH at $3,213, SOL at $134, as Bitcoin whales awakened in 2026 and transferred billions in BTC.
Spot BTC ETFs have seen a net outflow of (395) US$m on Jan 16.
Hyperliquid is leading: $4.60B TVL, $9.64B open interest,… pic.twitter.com/0B2MVhZQtz

— Drawknife (@drawknifee) January 19, 2026

Nonetheless, Hasn stated that renewed “risk-off” dynamics are limiting Bitcoin’s recovery. A significant concern is the political unrest surrounding the US Federal Reserve.

Reports of a criminal investigation involving Fed Chair Jerome Powell have complicated leadership transitions and raised doubts about the central bank’s independence.

“This institutional tension has immediate repercussions for market sentiment, as uncertainty regarding the Fed’s independence often leads to a flight from dollar-denominated assets,” he noted.

The situation has reignited discussions about the future of the dollar as a global safe haven. Analysts caution that a perceived decline in Fed autonomy could erode confidence in US assets, potentially hastening diversification towards alternatives.

“If investors lose trust in US government debt and the Fed’s independence, decentralized assets like Bitcoin and ‘hard’ assets like gold, which has already witnessed soaring prices, become the sensible hedge against institutional decline,” he stated.

Arthur Hayes Predicts Bitcoin’s Next Rally Depends on Dollar Liquidity in 2026

Arthur Hayes believes Bitcoin could achieve new all-time highs in 2026, asserting that its underperformance compared to gold and tech stocks in 2025 was driven by restricted dollar liquidity rather than weakening fundamentals.

According to Hayes, Bitcoin requires an increasing supply of dollars to excel, and without that financial support, even robust adoption trends are insufficient to elevate prices.

Optimism among long-term advocates also remains robust. Venture capitalist Tim Draper reiterated this week that 2026 would be a breakthrough year, reaffirming his longstanding $250,000 Bitcoin price target.

Meanwhile, Abra CEO Bill Barhydt believes Bitcoin could gain traction in 2026 as easing monetary policy infuses new liquidity into global markets, rekindling risk appetite following an extended period of tight financial conditions.

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