Bitcoin Trades Near $88,000 as ETF Outflows Deepen and Gold Extends Its Rally
Crypto markets slipped at the start of the week, with Bitcoin slipping below the $90,000 threshold amid heavy ETF withdrawals and heightened geopolitical risk. Meanwhile, gold surged to fresh record highs, underscoring a shift toward traditional safe‑haven assets.
Market overview
Most of the ten largest cryptocurrencies posted flat or modestly negative price action on Monday, with the sole exception of Ripple (XRP), which posted a modest rise. Bitcoin (BTC) was quoted just above $88,140, down roughly 0.5 % over the past 24 hours and 5 % on a weekly basis. Ethereum (ETH) hovered around $2,936, essentially unchanged in the last day but nearly 9 % lower for the week after falling beneath the $3,000 mark earlier in the month.
The slide comes as bitcoin‑focused exchange‑traded funds (ETFs) recorded a net outflow of $1.33 billion for the week ending 23 January, while Ethereum‑linked ETFs shed more than $611 million. The sustained capital drain from crypto‑focused products has added pressure to a market already wrestling with “extreme fear” signals on the Crypto Fear & Greed Index.
ETF withdrawals and macro backdrop
ETF outflows signal a broader reallocation toward safer assets. On the same day gold broke the $5,100 per ounce barrier, posting a new all‑time high and extending a multi‑week rally. The U.S. Dollar Index slipped to 0.97, its lowest level in four months, after reports of discussions between the U.S. Treasury, the Federal Reserve and Japanese authorities on possible yen‑support measures.
U.S. Treasury yields were largely static ahead of the Federal Reserve’s policy decision on 28 January, with the 10‑year yield at 4.225 %, the 2‑year at 3.603 %, and the 30‑year at 4.816 %. The modest dip in yields and the dollar’s weakness have reinforced the appeal of gold as a hedge, further diverting attention from risk‑on crypto assets.
Technical and sentiment analysis
- Keyrock noted that Bitcoin’s inability to reclaim upside momentum has muted demand for leveraged long exposure, casting doubt on the durability of the $90,000 support zone.
- VALR CEO Farzam Ehsani described the current market phase as “reactive and volatility‑driven,” suggesting that a clearer macro‑economic backdrop—particularly easing inflation data—will be required before a sustainable rally can emerge.
- Matrixport highlighted Bitcoin’s rejection at its 21‑week moving average as a decisive technical signal. As long as prices remain below this long‑term trend line, the market is likely to stay in a corrective stance.
- Independent analyst Markus Thielen agreed, warning that while short‑term tactical rebounds may appear, the prevailing conditions do not support a broad‑based upside move.
The Crypto Fear & Greed Index, which tracks investor sentiment, retreated back into the “extreme fear” zone, echoing the market’s cautious tone.
Top movers and liquidation activity
Among the top‑100 assets by market capitalisation, RIVER, the project backed by Justin Sun, surged 34 %, becoming the day’s biggest gainer. Algorand (ALGO) also posted solid gains of ≈5 %. On the downside, the Trump‑associated token World Liberty Financial (WLFI) fell nearly 8 %, while Rain (RAIN) slipped 3 %.
Leveraged positions saw substantial unwindings. CoinGlass reported roughly $750 million in liquidations over the previous 24 hours, with long positions accounting for $579 million. Ethereum led the liquidation tally with $274.6 million, followed by Bitcoin at $206.7 million and Solana at $64.1 million.
Key takeaways
| Takeaway | Implication |
|---|---|
| ETF outflows exceed $1.9 bn (Bitcoin + Ethereum) | Capital is shifting out of crypto‑specific products, pressuring prices. |
| Gold’s record‑high rally | Investors are favoring traditional safe‑havens amid geopolitical tension and a weaker dollar. |
| Bitcoin remains under $90k | The $90,000 support level is now a contested zone; technical indicators suggest continued correction. |
| Crypto sentiment in “extreme fear” | Market participants are risk‑averse, limiting demand for leveraged exposure. |
| Heavy liquidation of long positions | Downward pressure on BTC and ETH may persist until macro conditions improve. |
| Top‑performing altcoins still modest | Gains are largely isolated, with broader market breadth remaining thin. |
Outlook
Unless macro‑economic data deliver clearer inflation‑easing signals or ETF inflows resume, Bitcoin and the wider crypto market are likely to remain in a corrective, volatility‑driven phase. Traders should monitor the 21‑week moving average for Bitcoin, treasury‑yield movements, and any further shifts in safe‑haven demand as the next few weeks unfold.
Source: https://thedefiant.io/news/markets/bitcoin-trades-near-usd88000-crypto-market-update-jan-26-2026
