Bitcoin dropped below $90,000 this week, continuing its slide from last year’s record high, as markets reacted to weak price action and an upcoming U.S. vote that could reshape how cryptocurrencies are regulated.
The world’s largest cryptocurrency is now down more than 28% from its October 2025 peak of around $126,000. Each rebound in recent weeks has faded, keeping pressure on prices.
January 15 Senate vote ahead
The U.S. Senate Banking Committee is scheduled to vote on January 15 on a crypto market structure bill known as the Clarity Act.
The bill is designed to curb market manipulation by banning wash trading and fake volume, making spoofing and front running illegal, and requiring U.S. exchanges to provide proof of reserves and regular audits. It would also give regulators stronger tools to monitor market activity.
October crash still weighs on markets
The push for new rules follows a sharp selloff in October, when more than $100 billion in crypto positions were liquidated in a single day. Bitcoin and other digital assets fell together, but there was no clear public explanation of how the event began or which firms were involved.
Since then, price movements in crypto have appeared uneven, with sharp drops often following both positive and negative news.
Institutions watching regulation
Large financial firms largely limit their exposure to Bitcoin, staying away from smaller digital assets due to unclear rules. Clearer regulations could reduce legal risk and open the door to broader participation across crypto markets.
What’s next for the Bitcoin price?
The recent move higher did not develop into a clean and impulsive rally. Instead, it appears corrective in nature. In this case, the move came close to completion near the $97,000–$98,000 range but did not fully meet that ideal structure. Because of this, there is still a strong possibility that the correction is incomplete and could extend further.
Bitcoin has already broken below its first short-term support level, which increases the chance that the corrective phase is not finished. The next important support zone sits between $86,540 and $88,240.
This range is now the main decision area. A strong reaction from this zone could still allow for one more short-term bounce. If price fails to hold here, the likelihood of further downside increases.
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