On January 21, news reports indicate that as the selling pressure in the cryptocurrency market continues to intensify, Bitcoin has retreated from nearly $100,000 and fallen below $90,000, with most mainstream altcoins also weakening. Tom Lee from Bitmine and Fundstrat warned that this correction might just be a prelude to a larger downtrend in 2026, but if Bitcoin hits a new all-time high within the year, a structural rebound could be expected by the end of the year.

In Wilfred Frost's latest podcast interview, Tom Lee pointed out that the current market environment is highly similar to 2025. High leverage liquidations, pressure on risk assets, and macroeconomic uncertainties stacking up could keep most of 2026 in a "painful decline" zone. However, he also emphasized that if Bitcoin can break through its previous high, it would mean the market has fully digested the deleveraging shock from October last year, when a large number of leveraged positions were rapidly liquidated, causing intense turbulence across the entire crypto industry.