Crypto markets tread carefully as BTC hovers below $91k
Crypto markets displayed vulnerability on Friday as Bitcoin and Ethereum paused after a notable decline, with price movements reflecting a cautious sentiment amid shifting macroeconomic conditions. Amidst this situation, analysts observed that over $1.5 billion in outflows from Bitcoin investment funds this week suggest a possible short-term decline in institutional risk appetite. Bitcoin is still below the $91,000 mark, finding it difficult to surpass the resistance area between $92,000 and $95,000, which adds to an ongoing weak overall technical framework. The world’s largest cryptocurrency was trading flat at $89,870, with a 24-hour trading volume of $34.22 billion, according to reports. In the last 24 hours, Bitcoin has experienced minor fluctuations, trading between 88,438 and 90,220. Bitcoin currently sits approximately 29 per cent beneath its all-time high of 126,198, which was reached on October 7, 2025.
Ethereum has taken center stage as exchange reserves dropped to around 16.2 million ETH, reaching the lowest level since 2016, indicating a decrease in sell-side supply. Currently, Ethereum is down by 1.39 percent, with a price of $2,969 and a trading volume of $20.88 billion over the past 24 hours. The asset fluctuated within a range of $2,905 to $3,023 over the last 24 hours. “Macro factors continue to impact market sentiment,” stated Riya Sehgal. She observed that trends in long-term adoption remain positive, with the use of stablecoins by institutions and the development of on-chain settlement infrastructure progressing consistently. Sehgal pointed out that the information from the derivatives market shows that professional traders are taking a cautious approach rather than being fully pessimistic. “Funding rates remain subdued, while options activity is concentrated in volatility-based strategies, indicating expectations of consolidation and choppy trading,” she stated.
She also pointed out that over $1.5 billion in outflows from Bitcoin ETFs this week suggest a reduced institutional risk appetite in the near term. Akshat Siddhant, lead quant analyst at Mudrex, mentioned that crypto markets are seeking a clear catalyst to guide the next directional shift, as macroeconomic and geopolitical uncertainties persist in affecting activity. “Despite this, underlying sentiment remains positive, with institutional confidence clear as Michael Saylor indicates further Bitcoin accumulation even at current levels,” Siddhant noted. From a technical perspective, it is reported that Bitcoin is consolidating just below the $90,000 level after rebounding from the $88,600–$88,800 demand zone, which continues to serve as a crucial support. The recent upward momentum has come to a standstill because of short-term supply limitations, as more than 17,000 BTC transitioned to exchanges between January 20 and 21. Nonetheless, the price staying close to $90,000 shows that the underlying conviction remains robust, even amid a broader risk-off sentiment. “Structurally, as long as BTC maintains a position above $89,000, price action leans towards consolidation rather than a trend reversal.” Analyst stated “A decisive break above the key level could unlock upside, with significant short-side liquidity in the range and extending towards the higher levels.”
Analysts observed that for Ethereum, a consistent advance beyond $3,100 might open the path towards $3,400, while $2,850 remains a strong support area. The wider altcoin market showed varied sentiment. LayerZero, Axie Infinity, Lighter, XDC Network, TRON, PAX Gold, Tether Gold, Zcash, Algorand, Quant, Sky, Virtuals Protocol, Aptos, Pi, Ondo, Nexo, DoubleZero, The Sandbox, MemeCore, Litecoin, Aster, and Monero experienced gains ranging from 1 to 20 percent. In the latest market movements, several cryptocurrencies experienced declines ranging from 1 to 5 percent.
