Why is Bitcoin dropping? Are we about to enter a crypto winter? On Wednesday, January 21, 2026, Bitcoin's price briefly dropped to $88,000. Over the past 24 hours, Bitcoin's price has fallen by 2.1%. It's down 6% in the past week. Let's dive into the reasons behind Bitcoin's price crash and whether we're already in a bear market. Bitcoin ($BTC) experienced a short-lived price surge in January 2026, climbing back to the $97,000 mark on January 15. However, this rally was fleeting, and the price quickly plummeted to its current level. This market downturn was likely triggered by President Trump's announcement of tariffs on countries supporting Greenland's autonomy. The U.S.-Greenland dispute has caused significant investor concerns and further amplified the current risk-off sentiment. This risk-averse strategy is also reflected in the fact that gold and silver hit new highs on January 20, 2026, while Bitcoin ($BTC) faced a pullback. In the coming weeks, Bitcoin's price trend may reverse. The Federal Reserve is set to inject $55 billion in liquidity over the next few weeks. The first $8.3 billion was injected on January 20, 2026. Such interventions by the Fed typically lead to Bitcoin price increases. We anticipate similar trends in the weeks ahead.