January 2026; How far will BitCoin Fall, and What Will Drive its Recovery?

January 2026; How far will BitCoin Fall, and What Will Drive its Recovery?

By rah | rah | 31 Jan 2026


In the fallout from the collapse of Celsius I received a reasonable amount of BitCoin from the liquidators as well as some Ethereum. Then a few months later I moved into staked USDC when it was hitting new All Time Highs with the intention of buying more back.

Then Trump went and won the election – he always goes off script even when it is not his fault!

Prices surged again and it seemed that I had forever lost my reasonable hold (rather than just a few thousand sats) on BitCoin and an opportunity to really grow it into something, even now during this January 2026 correction, it has yet to reach my “buy more back” price.

January, after a brief post-Christmas surge, has been devastating, and ironically this is probably the best time to buy and acquire more credible currency even if it means ditching S**tCoins at a loss (BAND anybody) and this is where I want to pick things up.

Where do we go from here?

For the last few weeks BitCoin has been trading around the mid‑$80ks to low‑$90Ks and analysts see it plausibly bottoming out somewhere in the mid‑$70ks before we see any improvement.

I generally deal with GBP so I am looking at a range of between  £55,000 and £62,000

Some particularly bearish projections can see it reaching a low of between $60K–$65K and just a few analysts feel that it will be even worse, although this scenario is highly unlikely unless macro conditions significantly worsen. Even with these pessimistic predictions behaviour on the market suggests caution, not panic as what we are seeing is far better than what could be described as a collapse.

This might be my opportunity to get back into the BitCoin game, even if my “buy back” is higher than ideal.

Growth almost always follows consolidation and it is widely thought that lower interest rates may well be a key factor that could support a strong rebound because typically when central banks ease policy risk assets—including BitCoin—typically benefit. Added to this there is a high expectation of more institutional inflows and an increase in ETF demand. In short institutional buying will be among the strongest bullish drivers to look out for. This in turn my then trigger not only a recovering but a real prospect for growth with BitCoin even reaching $170K in the optimistic scenarios.

Behind the scenes we are still feeling the effects of the 2024 halving which is continuing to exert upward pressure by reducing new supply and greater regulation (particularly MiCA) brought in at the end of 2025 are inevitably leaving their mark while at the same time making the crypto landscape a much clearer field to operate in.

So all in all, and please DYOR, it might be getting very close to the time for me to finally but my now dormant (read unstaked) USDC to work and buy back my BitCoin and more to hodl for the foreseeable future.

As always stay safe and well my friends.

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rah
rah

I love reading and technology as well as history. I teach English and Business to professional clients as well as soft skills with a focus on communications. I am a big fan of both Sheffield Wednesday and Lincoln City Football clubs


rah
rah

Experienced Business Owner and Coach and Tutor who now trades in Crypto. It is proving to be an interesting journey with so much technical language involved. Follow me as I learn the trade (and how to trade). Made some howling mistakes to begin with, but still learning and will share what I learn as I learn it for the benefit of the community. - RAH

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