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Bitcoin Steadies Near $90,000 After Flash Drop as ETF Outflows and Leverage Roil Trade

Traders frame the move as a range trade, with resistance near $95,000 and support around $89,000–$90,000 defining the next tests.

Overview

  • Bitcoin briefly fell to roughly $89,300–$89,600 on Jan. 8–9 before rebounding back above $90,000.
  • U.S. spot Bitcoin ETFs logged a three‑day outflow streak through Thursday of about $935 million, including roughly $399 million on Thursday, reversing early‑January inflows.
  • Derivatives data show elevated open interest near 700,000 BTC and persistently positive funding rates, pointing to crowded longs and higher liquidation risk.
  • CoinGlass reported about $128 million in long positions were liquidated during the drop, underscoring how leverage is amplifying short‑term swings.
  • Shifting Federal Reserve rate‑cut expectations and fresh labor data weighed on risk appetite, while several analysts characterized the pullback as a healthy retracement rather than a structural break.