Bitcoin Price Stalls Near $90,000 as ETFs Record $720 Million in Outflows

Bitcoin Retreats as Capital Flows Reverse

Bitcoin's price fell back to approximately $90,430 as of early Thursday morning, representing a decline of over 2% in the past 24 hours ^[2]. The cryptocurrency had briefly surged above $93,500 earlier in the week before encountering strong selling pressure ^[2].

The pullback comes amid a broader cryptocurrency market decline of 2.5%, bringing the total market capitalization to $3.18 trillion ^[2]. The selloff triggered liquidations affecting over 111,000 traders, with total liquidations reaching $364.56 million ^[2].

Massive ETF Outflows Signal Profit-Taking

Spot Bitcoin exchange-traded funds experienced substantial capital outflows over two consecutive trading days, losing approximately $720 million in total ^[4]. The products from BlackRock and Fidelity were among those recording significant withdrawals ^[4].

Despite the recent outflows, the first three trading days of 2026 had shown momentum with $925.3 million in net inflows into spot Bitcoin ETFs ^[1]. The reversal suggests investors may be taking profits after the early-year rally.

Analyst Maartunn noted that Bitcoin's Net Taker Volume hit negative $19 million on the 25-hour moving average, representing the strongest selling pressure since December 23 ^[2]. This metric, which measures the gap between market order buy and sell volumes, indicates that aggressive sellers have regained short-term control ^[2].

Market Sentiment Shifts to Fear

The Crypto Fear & Greed Index, which tracks overall market sentiment, returned to the "fear" zone with a score of 28 on Thursday ^[1]. The index had briefly moved toward neutral on Wednesday before slipping back, signaling weakening investor confidence and reduced risk appetite ^[2].

The sentiment indicator has fluctuated between "fear" and "extreme fear" since early November ^[1]. Technical analysis shows Bitcoin's Relative Strength Index dropping from 66 to 51.54, suggesting sellers are stepping in or taking profits after the new-year surge ^[2].

Sideways Trading Expected Despite Historical Trends

CryptoQuant CEO Ki Young Ju suggested Bitcoin may experience "boring sideways" price action over the coming months, stating that "capital inflows into Bitcoin have dried up" as investor interest has shifted to "stocks and shiny rocks" amid rising gold and silver prices ^[1].

This forecast would contradict Bitcoin's historical performance patterns. February and March have historically delivered strong gains of 13.12% and 12.21% respectively, while January typically averages more modest returns of 3.81% since 2013 ^[1].

Analyst Ali Martinez indicated that Bitcoin's next directional move depends on whether the cryptocurrency closes below $88,000 or above $94,000 ^[2]. The 50-day Simple Moving Average at approximately $89,192 is currently acting as a strong support level ^[2].

Conflicting Price Predictions for 2026

While some analysts maintain a cautious outlook, with predictions of potential drops to $65,000 or even $60,000 from veteran trader Peter Brandt and Fidelity's director of macroeconomic research Jurrien Timmer ^[1], others remain bullish.

Venture capitalist Tim Draper expressed confidence that "2026 will be big," reiterating his prediction that Bitcoin will reach $250,000 ^[1]. Meanwhile, Bitwise head of research Ryan Rasmussen stated on December 17 that Bitcoin will break the traditional four-year cycle in 2026 and reach new all-time highs ^[1].

Analysts from Bernstein expressed optimism that the local bottom around $80,000 established in November will hold, with price targets of $150,000 to $200,000 for this year ^[4].