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Analysis: Main Reasons for Bitcoin's Recent Decline Linked to Weakening Momentum from Early-Year Surge, Rising Risk Aversion Ahead of US Jobs Data, and Outflows from ETFs
Summary: According to Decrypt, as Bitcoin continues to fall, the New Year optimism has all but dissipated, with most gains from the first week being erased. Based on CoinGecko data, Bitcoin has dropped 2.4% in the past 24 hours, currently trading at $89,881. Over the past 24 hours, liquidations across the network have exceeded $477 million. ...
According to Decrypt, as Bitcoin continues to fall, the New Year optimism has all but dissipated, with most gains from the first week being erased. Based on CoinGecko data, Bitcoin has dropped 2.4% in the past 24 hours, currently trading at $89,881. Over the past 24 hours, liquidations across the network have exceeded $477 million.
CEX.IO Chief Analyst Illia Otychenko stated that Bitcoin breaking below $90,000 reflects a weakening momentum from the early-year rally. Initial inflows and favorable geopolitical news in early 2026 provided support, but were not enough to sustain a prolonged rebound.
SynFutures COO Wenny Cai noted that despite a strong start to 2026 and ongoing structural positives, Bitcoin has struggled to hold above $90,000, with multiple factors at play. She highlighted a global rise in risk aversion, with investors awaiting key macroeconomic indicators including US jobs data, leading to suppressed risk appetite. This risk aversion is reflected in Bitcoin mainly hovering around the $90,000 mark and occasionally dropping below it.
Otychenko also mentioned that there have been outflows from spot Bitcoin ETFs, further reinforcing the recent pullback trend, with the US Bitcoin spot ETF seeing a net outflow of $243 million in a single day.
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Link: Analysis: Main Reasons for Bitcoin's Recent Decline Linked to Weakening Momentum from Early-Year Surge, Rising Risk Aversion Ahead of US Jobs Data, and Outflows from ETFs [Copy]
