- Bitcoin drops to $88,000 as ETF net outflows near a record $1 billion, triggering market panic.
- Bitcoin faces crucial support at $85,696; a break below could push prices toward the $70,000 range.
Bitcoin’s price tumbled to the $88,000 range as US spot BTC ETFs recorded massive net outflows. On Tuesday alone, withdrawals hit $937 million, with weekly losses approaching $1.5 billion. Fidelity’s FBTC led with $344 million in redemptions, followed by BlackRock’s IBIT at $164 million. Other significant outflows came from Bitwise, Grayscale, and Franklin Templeton.
These outflows surpassed the previous record of $672 million set on December 19, signaling deepening investor anxiety. Analysts link the panic to President Trump’s renewed tariff threats on Mexico and Canada, raising inflation fears and sparking a broader market sell-off.
Crucial Support Levels in Focus
Bitcoin broke below the critical $91,000 support, sliding to $88,928. Technical indicators paint a bearish picture. The 200-day EMA at $85,696 now serves as a vital support. A breach below this level could accelerate losses toward the $70,000 range.
The RSI hovers at 29.80, indicating oversold conditions. However, there’s no clear sign of a reversal. Meanwhile, the MACD confirms a bearish trend with a deep negative histogram. Resistance looms at $91,000, while the next significant demand zone sits between $67,797 and $70,000.
Investor Sentiment Worsens
IntoTheBlock data shows intense selling pressure. Around 6.11 million addresses bought 4.1 million BTC at an average price of $98,050, forming a heavy resistance wall. On the flip side, support emerges near $72,500, where 6.76 million addresses hold 2.65 million BTC.
Bitcoin : What’s Next?
If bulls defend the 200 EMA, Bitcoin may rebound toward $91,000. Failure could see BTC plummet to the $70,000 mark. With rising macroeconomic tensions and massive ETF outflows, the road ahead remains rocky.
Investors should brace for volatility as market sentiment shifts and geopolitical risks mount.
