Bitcoin Holds at $90,000 Amid ETF Outflows and Geopolitical Risk
If BTC finds solid support near the US$90,000 area, the recovery could gain traction, with potential upside toward US$94,253.
Quick overview
- The cryptocurrency market showed slight gains on Friday, with Bitcoin (BTC) up 0.5% to US$90,465.
- Ethereum (ETH) fell 0.6% to US$3,097, while altcoins like Ripple (XRP) and BNB saw minor increases.
- Heavy outflows from U.S.-listed Bitcoin ETFs totaled US$1.128 billion over three days, indicating a cautious stance among institutional investors.
- Geopolitical tensions, particularly between China and Japan, are impacting market sentiment and Bitcoin's performance.
The cryptocurrency market stabilized and traded slightly higher on Friday. Bitcoin (BTC), after rebounding in the New Year rally, is now advancing cautiously, up 0.5% to US$90,465, according to Binance.
Ethereum (ETH) is down 0.6%, slipping toward US$3,097. Altcoins are mostly moving in the same direction: Ripple (XRP) is up 0.5% and BNB gains 0.7%. Solana (SOL), however, stands out with a stronger rise of 2.9%.
ETF outflows and geopolitical tensions fuel caution
The market saw three consecutive days of heavy outflows from U.S.-listed spot Bitcoin ETFs this week. Over the past three days, the 11 ETFs trading in the United States recorded net outflows of US$1.128 billion, virtually wiping out earlier inflows and reinforcing a short-term defensive stance among institutional investors.
Bitcoin’s performance this week has been largely constrained by rising geopolitical risks, which have reduced appetite for risk assets.
In Asia, a diplomatic dispute between China and Japan intensified after Beijing imposed export restrictions on Tokyo and launched an antidumping investigation into Japanese chemical manufacturers. Media reports have also raised the possibility that China could restrict key rare earth exports to Japan, a move that would put pressure on the country’s massive manufacturing sector.
Meanwhile, in Latin America, the U.S. invasion of Venezuela—which resulted in the capture of President Nicolás Maduro—shook markets earlier this week, driving sharp gains in gold and silver, but not in Bitcoin. In addition, U.S. President Donald Trump is reportedly preparing to take control of Venezuela’s oil industry for years, a move that could anger China and trigger further political instability.
From a technical perspective, if Bitcoin sustains its corrective move and closes below US$90,000 on the daily chart, losses could extend toward the next support level around US$85,569. Conversely, if BTC finds solid support near the US$90,000 area, the recovery could gain traction, with potential upside toward the key resistance at US$94,253.
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