Crypto Quill

Bitcoin plunged over 5% in hours, smashing through a critical support line that traders watched for months. The drop pushed the cryptocurrency under $85,000 for the first time since early November, while the fear and greed index sank to 20, a level that screams extreme fear among investors.

Late Sunday night, Bitcoin lost the rising trendline that held as support inside a massive inverted flag pattern on the daily chart. This breakdown confirms the bearish pattern and opens the door to much lower prices.

Many analysts now target the $74,000 to $76,000 zone if selling pressure continues. On-chain data shows long-term holders stayed calm during the dip, but short-term holders panicked and sold large amounts near the lows.

BlackRock Launches Surprise Bitcoin Income ETF Filing

While markets bled, the world’s largest asset manager dropped big news. BlackRock filed an S-1 form with the SEC on January 23, 2026, for the iShares Bitcoin Premium Income ETF. The new fund plans to use a covered-call strategy on Bitcoin to generate monthly income for investors.

This marks the first time a major Wall Street firm offers a yield-focused Bitcoin product. The fund will hold Bitcoin directly and sell call options against those holdings to collect premiums. Investors get exposure to Bitcoin price moves plus extra income from the options.

Why Covered Calls Matter in Crypto Now

Covered-call strategies shine when prices trade sideways or drop slowly. They produce steady income even if Bitcoin stays flat or falls a little. BlackRock’s move shows the firm believes many investors want Bitcoin exposure without full upside risk right now.

The filing comes just weeks after spot Bitcoin ETFs shattered inflow records. Those funds already hold over $120 billion in Bitcoin. A premium income version could attract retirement accounts and income-focused investors who stayed away from pure price plays.

Market Reaction and Short-Term Price Action

Bitcoin bounced 2% to $88,311 during Monday’s U.S. session after the BlackRock news hit wires. Traders called it a relief rally after the weekend bloodbath. Volume spiked on the bounce, but momentum indicators stay weak.

Several large players bought the dip near $83,000. Yet the broken trendline now acts as resistance overhead. A close back above $90,000 this week would invalidate the bearish setup and put $100,000 back in play.

What Analysts Say Next

Top voices split on the outlook. Some technical analysts warn the inverted flag breakdown targets $70,000 if support fails again. Others point to BlackRock’s filing as proof institutions keep building Bitcoin products no matter the price.

Fundstrat’s Tom Lee stuck to his $150,000 year-end target. He called the drop “healthy profit-taking” after Bitcoin ran from $60,000 to $103,000 in weeks. Standard Chartered analysts see the covered-call ETF as the next evolution that brings billions more from traditional finance.

The fear and greed index at 20 matches levels seen at major bottoms in past cycles. Historically, extreme fear readings often mark the exact moment smart money starts buying.

BlackRock’s bold move to launch an income-generating Bitcoin ETF while prices crash sends a clear message. The giant asset manager views Bitcoin as a permanent asset class, not a passing trend. For millions of investors scared to buy at all-time highs, monthly income from covered calls might finally feel safe enough. Whether Bitcoin finds its floor here or drops further, Wall Street’s commitment grows stronger by the day.