$BTC

Bitcoin has decisively broken below the critical $90,000 support level, signaling renewed weakness in the cryptocurrency market as institutional interest cools and macro headwinds intensify.

After a period of consolidation around the psychologically important $90k mark, BTC failed to hold the line amid mounting selling pressure. The drop comes as investors digest persistent outflows from spot Bitcoin ETFs and brace for key central bank decisions that could further squeeze risk assets.

Data shows U.S. spot Bitcoin ETFs recorded net outflows for four straight days, totaling $1.6 billion. On Thursday, January 22, the 12 funds saw $32 million in net redemptions, led by BlackRock’s IBIT ($22.3 million out) and Fidelity’s FBTC ($9.7 million out). No other ETFs posted inflows that day.

This extends a broader trend: the products have now shed a combined $14.55 million this month alone and appear on track for another negative close, following heavy losses of $3.48 billion in November and $1.09 billion in December.

The selling reflects a broader shift in sentiment. Institutional demand has flattened, with many large players stepping back rather than adding exposure. Short-term technical indicators continue pointing lower, reinforcing the bearish case after the support breach.

Adding to the caution is the macro backdrop. Investors are closely watching the Bank of Japan’s upcoming interest rate decision, with markets pricing in a possible hold at 0.75%—a level not seen in nearly three decades. Sustained high rates would likely strengthen the yen and reduce appetite for high-beta assets like Bitcoin.

In this environment of “extreme fear,” Bitcoin’s slide below $90k feels less like a temporary dip and more like a confirmation that the recent rally has run out of steam—for now. While longer-term bulls may view this as a healthy correction, the immediate outlook favors further downside until fresh catalysts emerge or macro conditions ease.