- Bitcoin hovers between $94,000 and $100,000 as institutional demand weakens and ETF outflows increase.
- Bitcoin could drop to $86,000 if demand growth and liquidity conditions fail to improve.
Bitcoin has been stuck between $94,000 and $100,000 since early February. At the time of writing, BTC hovers around $98,000. However, concerns are rising as institutional demand weakens.
According to data from Bitcoin spot ETFs, a net outflow of $489.60 million was recorded this week. This follows a $580.2 million outflow last week, signaling a persistent decline in investor confidence. If this trend continues, BTC could see further price corrections.
Institutional Outflows and Demand Weakness
A CryptoQuant report highlights that Bitcoin’s apparent demand has dropped significantly. Demand growth spiked in November-December 2024, partly due to the U.S. Presidential election results. However, it has now fallen from 279K in December to just 70K this week.
This decline in demand, coupled with high ETF outflows, paints a bearish outlook for Bitcoin. If liquidity conditions do not improve, BTC could potentially drop to $86,000.
FTX Repayments Shake the Market
Bitcoin briefly dipped to $93,388 on Tuesday before recovering above $95,600. This sudden movement came after the announcement that bankrupt exchange FTX had begun repaying customers with account balances under $50,000.
According to Arkham data, approximately $1.2 billion in funds were distributed through Kraken and Bitgo. However, the total expected payout is up to $16.5 billion. Large-scale repayments may contribute to further market volatility.
Bitcoin Volatility at Multi-Month Lows
Despite price fluctuations, Bitcoin’s overall volatility remains at historic lows. A K33 Research report states that BTC’s 30-day volatility is now lower than 37% of the top 100 U.S. companies.
However, such stability rarely lasts long. Market conditions suggest a potential breakout, and traders should prepare for increased volatility.
Will BTC Breakout or Drop Further?
Bitcoin’s next move depends on whether it can break its consolidation range. If BTC surpasses $100,000, it may rally toward its January high of $106,457. The MACD indicator also shows a bullish crossover, hinting at possible upside momentum.
On the other hand, if BTC closes below $94,000, it could decline further to $90,000. A failure to hold this level could push BTC toward $86,000, where historical support exists.
