Bitcoin Price Analysis: BTC Starts 2026 With A Whimper, Drops Below $88,000
The new year brought little to cheer for crypto traders as Bitcoin (BTC) retreated further and slipped below the $88,000 mark to $87,580. The flagship cryptocurrency is down over 1% in the past 24 hours as markets remain in bearish territory.
However, analysts remain bullish on BTC and believe it could rally to a new all-time high in the first half of 2026, benefiting from increased liquidity.
RBI Warns Of Stablecoin Risk, Urges Peers To Back CBDCs
The Reserve Bank of India (RBI) has warned major economies about the inherent risks associated with stablecoins and urged them to focus on developing central bank digital currencies (CBDCs). The RBI stated that stablecoins fall short of key monetary principles and pose substantial risks to monetary sovereignty and financial stability. The central bank said in its yearly financial stability report,
Stablecoins have emerged as a key component of the crypto asset ecosystem, and their prominence has risen following legal and regulatory clarity in select jurisdictions. As stablecoins’ position as an alternative form of money, it is vital to recognise that they fall short of the foundational requirements expected from a sound monetary system – singleness, elasticity, and integrity.
The RBI put forth the case for CBDCs, arguing they help preserve the singleness of money and the integrity of the financial system.
Crypto Figures Lost Billions After October Crash
Prominent figures from the crypto industry lost billions as the October market crash wiped out billions from their personal wealth. According to the Bloomberg Billionaires Index, Strategy executive chairman Michael Saylor lost $2.6 billion over the past year as his net worth fell to $3.8 billion. The losses came after October’s flash crash, which sent Bitcoin and other crypto-linked assets and equities hurtling lower. Former Binance CEO Changpeng Zhao saw his fortune dwindle to $50 billion, dropping 5% over the year. Tyler and Cameron Winklevoss saw the biggest decline, losing 59% of their combined wealth as trading volumes and prices dropped.
However, not everyone fared badly. Jeremy Allaire, CEO of Circle, saw his net worth increase by 149% thanks to growing stablecoin adoption.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) crossed $88,000 on Tuesday as markets posted a slight recovery. However, it returned to bearish territory on Wednesday, dropping 1.02% to $87,497. The flagship cryptocurrency is marginally up during the ongoing session, trading around $87,685. Price action has remained subdued over the past couple of weeks, with BTC trading between $86,000 and $90,000.
Despite the subdued price action, Bitwise CIO Matt Hougan has stuck to a bullish outlook but said that US politics will not be the driving force behind any potential rally in 2026. BTC rallied to new highs in 2025 following President Trump’s inauguration. However, Hougan believes the Trump administration is unlikely to unlock any significant upside. The crypto industry remains deeply divided about BTC’s price action in 2026. Fidelity’s Jurrien Timmer believes 2026 could be a pause year, with Bitcoin sliding towards $65,000.
However, others like Strategy CEO Phong Le believe Bitcoin’s underlying fundamentals remain strong and held through 2025 despite weak price action. Hougan also expects 2026 to be a positive year for the flagship cryptocurrency.
BTC ended the previous weekend at $88,639, registering a marginal increase. The price reached an intraday high of $90,541 on Monday but lost momentum and settled at $88,556. Selling pressure intensified on Tuesday as BTC fell 1.27% to $87,429. Despite the selling pressure, the price recovered on Wednesday, rising 0.21% to $87,609. However, selling pressure returned on Thursday as BTC fell 0.50% to $87,171.
Source: TradingView
BTC reached an intraday high of $89,496 on Friday but failed to sustain momentum and settled at $87,296. Price action remained positive over the weekend, with BTC rising 0.59% on Saturday and 0.08% on Sunday to $87,877. The price reached an intraday high of $90,325 on Monday. However, selling pressure forced BTC to retreat below $90,000 and settle at $87,110. The price recovered on Tuesday, rising 1.48% to $88,397. However, selling pressure returned on Wednesday as BTC fell 1.02% to $87,497. BTC is marginally up during the ongoing session, trading around $87,692.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.