Bitcoin Undervalued at $87,700: Kyle Chassé Targets $270,000

As of January 26, 2026, Bitcoin (BTC) trades at $87,700, reflecting a 1.2% decline over the past 24 hours, according to data from CoinMarketCap. This dip comes amid heightened U.S. political tensions and fears of a government shutdown by January 31, pushing BTC below a critical psychological threshold of $90,000. The market sentiment is shaky, yet some analysts see this as a buying opportunity based on global liquidity trends.

Price Action Details

Bitcoin’s current price of $87,700 marks a 1.2% drop in 24 hours, a 3.5% decline over the past 7 days, and a 5.8% loss over the last 30 days, per CoinGecko. Key support lies at $85,000, with resistance at $90,000 proving stubborn as BTC struggles to reclaim it. Trading volume stands at $32 billion in the last 24 hours, 15% below the 30-day average of $37.6 billion, signaling reduced market participation. Bitcoin’s market cap now hovers at $1.73 trillion, down from a peak of $1.85 trillion earlier this month.

Driving Factors

Crypto pundit Kyle Chassé attributes Bitcoin’s undervaluation to rising global liquidity, pegging a potential target at $270,000 in a recent X post. He cites the global M2 money supply hitting a record $98 trillion, with a year-to-date growth of 6.2%, the fastest since the 2020 pandemic response, driven by monetary expansion in the U.S., Eurozone, China, and Japan. On-chain data from Glassnode shows whale accumulation, with wallets holding over 1,000 BTC increasing by 2.3% in the past week, suggesting confidence among large holders. Additionally, BitMEX co-founder Arthur Hayes recently predicted that dollar liquidity surges would propel BTC higher, a narrative gaining traction amid fiat currency weakening like the Dollar (DXY down 4% YTD) and Yen (down 6% YTD).

Broader Market Context

Bitcoin’s performance mirrors broader crypto market struggles, with Ethereum (ETH) down 2.1% in 24 hours to $2,450, though it holds better than BTC’s 30-day loss at only 4.2%, per CoinMarketCap. DeFi total value locked (TVL) remains steady at $82 billion, a marginal 0.5% drop week-over-week as reported by DefiLlama, indicating sector resilience despite BTC’s dip—check more on DeFi News. The Fear & Greed Index sits at 39 (Fear), down from 45 last week, reflecting cautious sentiment. Analyst Merlijn, in a recent X post, forecasts a potential BTC rally to $124,000 once liquidity returns, urging investors to focus on long-term wave patterns while noting current trend fatigue in BTC’s price action—stay updated via Crypto News.