In Brief:
- Bitcoin fell below $90,000 as heavy selling from leveraged positions and ETFs intensified downward pressure.
- Large ETF outflows, totalling $1.22 billion over four days, signal potential short-term market bottom.
- Elevated borrowing costs keep capital in yield-generating assets, restricting fresh inflows into Bitcoin.
Bitcoin (BTC-USD) slid to $88,980.24 by 11:00 GMT on Friday, dropping below the $90,000 mark amid heavy selling pressure from institutional and leveraged positions
Spot Bitcoin funds and ETFs recorded their largest weekly outflows since November, with $1.22 billion leaving the market over the four days to Thursday, according to SoSoValue data.
The average ETF investor cost basis currently sits at $84,000, a level that has acted as a key support during previous pullbacks. Option and prediction markets suggest a high probability that Bitcoin will trade between $88,000 and $90,000 this week, with lower chances of reclaiming $92,000 by the end of the week.
Technicals suggest that if prices continue lower, support may come in at around $84,000 and $80,000, with a failure to hold the latter potentially seeing the cryptocurrency fall toward $70,000 territory.
Indicators including RSI and MACD show weak momentum, pointing to potential consolidation or a short-term correction.
Bitcoin has been displaying investor caution, mainly driven by high US Treasury yields, which remain around 4.2–4.3% for 10-year bonds.
Elevated funding costs continue to favour yield-bearing assets over Bitcoin, limiting sustained inflows until markets expect borrowing costs to ease.