Bitcoin Dips to $88,000 Amid ETF Outflows Approaching $1 Billion

On Tuesday, net outflows from US spot Bitcoin ETFs (exchange-traded funds) approached $1 billion, reflecting a significant continuation of losses in the sector.

This drop parallels a broader market decline driven primarily by economic uncertainties following President Trump's renewed tariff threats.

Bitcoin ETF Net Outflows Reach Near $1 Billion

Recent analyses by Farside Investors and Trader T indicate that net outflows from Bitcoin ETFs hit approximately $937 million by Tuesday. Leading the charge was Fidelity's FBTC with outflows of $344 million, followed by BlackRock's IBIT at $164 million.

Additionally, Bitwise’s BITB and Grayscale’s BTC recorded net withdrawals of $88 million and $85 million respectively. Franklin Templeton’s EZBC accounted for $74 million, while Grayscale’s GBTC and Invesco’s BTCO faced declines of $66 million and $62 million respectively.

Other funds from Valkyrie, WisdomTree, and VanEck also reported significant redemptions, with their BRRR, BTCW, and HODL funds experiencing $25 million, $17 million, and $10 million in outflows, respectively.

These losses dwarf the previous record on December 19, when U.S. spot Bitcoin ETFs saw around $672 million withdrawn after Bitcoin's price fell below $97,000.

Investor Dissolve DC remarked on Twitter that these outflows illustrate a notable panic on Wall Street, especially since spot Bitcoin ETFs enable institutional investors to access BTC indirectly.

“We asked Wall Street to join the party this is what we get,” Dissolve DC commented.

Experts attribute the unease in the market to President Trump's tariff confirmations, which reportedly led to over $1 billion in liquidations across various crypto markets. Trump has reignited discussions on tariffs targeting goods from Mexico and Canada, heightening concerns about inflation and driving investors away from riskier assets.

“We’re on time with the tariffs, and it seems like that’s moving along very rapidly…We’ve been mistreated very badly by many countries, not just Canada and Mexico. We’ve been taken advantage of,” stated Trump during a White House briefing.

In light of these factors, Bitcoin fell below the critical support level of $91,000 and was trading at $88,928 at the time of this writing. This downturn is also reflected in last week’s substantial outflows from digital asset investment products.

Bitcoin Price Outlook: Key Levels to Monitor

The BTC/USDT trading pair on the daily timeframe reveals a change in market structure as Bitcoin's price sinks below a significant bearish breaker level around $93,700. This shift contributes to the ongoing pressure on Bitcoin as the supply zone at $103,991 remains a formidable resistance level.

The price is nearing the critical 200-day EMA at $85,696, which serves as essential support. A breakdown below this level could trigger further bearish momentum. Should the 200 EMA fail, the next major support zone lies between $67,797 and $70,000, where buying activity may increase.

The RSI (Relative Strength Index) currently sits at 29.80, indicating that Bitcoin is oversold, yet there is no clear reversal signal. The MACD (Moving Average Convergence Divergence) indicates a bearish crossover with notable negative histogram values, reaffirming the negative trend.

Moreover, a high-volume node exists around the $91,000 mark, serving as an immediate resistance point. The low-volume area below the current price suggests a potential for a sharp decline.

Overall, Bitcoin remains at a pivotal support level. If bulls can defend the 200 EMA, a recovery towards $91,000 may be on the horizon. However, a drop below could lead to a dip to the $70,000 range in the upcoming weeks.

According to IntoTheBlock’s Global In/Out of the Money metric, Bitcoin is facing immediate resistance from about 6.11 million addresses that acquired 4.1 million BTC at an average price of $98,050.

In summary, Bitcoin's initial robust support lies around the $72,500 level, where 6.76 million addresses own approximately 2.65 million BTC purchased at an average price of $65,304.