Bitcoin price dips to $92.8K as ETF outflows hit $569 million in one day
Bitcoin slides below $93K amid ETF outflows
Bitcoin’s promising start to 2025 has hit significant hurdles, erasing its initial 10% gains and sliding below critical levels. On January 8, the cryptocurrency dropped to $92,800, a stark reversal from its earlier surge above $102,000.
This steep decline, coupled with substantial ETF outflows and liquidations, raises concerns about the market’s trajectory in the face of tightening monetary policy.
BTC price dynamics (November 2024-January 2025). Source: TradingView.
The bearish sentiment exacerbated investor withdrawals from the U.S.-listed spot Bitcoin ETFs. On January 8, these ETFs recorded $569.08 million in outflows, the second-largest daily net outflow since their inception. The Fidelity Wise Origin Bitcoin Fund (FBTC) contributed 45% of these withdrawals, with a record $258.7 million pulled in a single day. Meanwhile, the broader crypto market saw liquidations totaling $521.02 million, as per CoinGlass data.
The sell-off is tied to concerns over the US Federal Reserve’s tightening monetary policy in response to robust economic data. According to Ryan Lee, chief analyst at Bitget Research, the prospect of further interest rate hikes is driving uncertainty in the crypto market, contributing to Bitcoin’s recent decline.
Bitcoin price forecast: RSI and EMA signal further losses
Bitcoin dropped to $92,800 on January 8 and found temporary support at the 50-day EMA, allowing a brief recovery to $95,500. However, the support proved fragile as prices slipped again to trade near $94,000 in early European trading on January 9. Technical indicators also reflect mounting weakness; the RSI has fallen below 50, pointing to diminishing momentum.
On the technical front, The RSI indicator has dropped below 50, highlighting weakening momentum. With sentiment subdued and key technical and psychological levels under threat, holding $92,000 could stabilize prices in the near term, but further deterioration could open the door for extended losses. Meanwhile, moving back above $100,000 would be necessary to restore investor confidence
Bitcoin dropped 6% to $96,100, marking its steepest decline since mid-December. Strong U.S. economic data and rising Treasury yields sparked a broader market sell-off.
