Bitcoin Extends Losses Near $90,000 as ETF Outflows Hit $1.13 Billion Over Three Days

Sustained institutional capital exodus and bearish liquidation data signal deteriorating investor appetite ahead of pivotal US employment report that could determine crypto’s near-term trajectory

Institutional Flight Intensifies

Bitcoin extended its decline on Friday, hovering near the $90,000 level as investment flows remained firmly negative. Spot Bitcoin ETFs recorded a further $398 million in net outflows on Thursday, bringing cumulative withdrawals over the past three sessions to approximately $1.13 billion, according to data compiled by major market tracking platforms.

This sustained capital exodus underscores a clear deterioration in institutional appetite and reinforces a bearish near-term backdrop for the cryptocurrency. The reversal is particularly stark given that 2026 opened with strong inflows—spot Bitcoin and Ethereum ETFs combined to attract $645.6 million on January 2nd, the year’s first trading day. Wednesday’s $486 million outflow alone marked one of the largest single-day withdrawals in recent months, led by products from Fidelity and BlackRock.

Ethereum Suffers Parallel Retrenchment

The risk-off tone has also spilt over to Ethereum. ETH ETFs registered $159 million in outflows on Thursday, their largest daily withdrawal since mid-December, highlighting that the retrenchment is broad-based rather than Bitcoin-specific. Total Ethereum ETF assets now stand at approximately $19.1 billion, representing just over 5% of Ethereum’s market capitalisation, with ETH trading around $3,110.

The coordinated selling across both major cryptocurrencies suggests that institutional investors are reducing their overall digital asset exposure rather than rotating between tokens. Grayscale’s ETHE, which had led inflows at the start of January with $53.7 million on the first trading day, has since reversed course alongside BlackRock’s ETHA and other major products.

Bearish On-Chain Dynamics

On-chain data validate this negative bias and underscore the precarious positioning of leveraged traders. Over the past 24 hours, long liquidations were more than double those of shorts, painting a decidedly bearish scenario for the cryptocurrency. According to liquidation tracking data, approximately $228 million in Bitcoin futures positions were unwound, with the overwhelming majority representing forced exits of long positions as prices broke below key support levels.

In parallel, the long/short volume ratio remained below 1 for multiple sessions, pointing to persistent selling pressure and limited conviction on the long side. This imbalance suggests that speculative traders who bet on Bitcoin’s continued ascent are being systematically flushed out, while short sellers maintain control of near-term momentum. Ethereum experienced similar dynamics, with roughly $73.4 million in liquidations concentrated heavily among leveraged long positions.

Technical Picture Deteriorates

From a technical perspective, Bitcoin remains range-bound between well-defined support at approximately $85,300 and resistance near $94,500. The cryptocurrency has repeatedly failed to break above the $94,500 threshold over the past week, with each rejection reinforcing bearish sentiment and emboldening sellers. At current levels around $89,800, Bitcoin trades approximately 2.5% lower on the day and roughly 29% below its all-time high achieved in late 2025.

Momentum indicators support the cautious view. The Stochastic RSI hovers near oversold territory, suggesting that short-term relief bounces remain possible, but without strong volume accompanying any upside move, rallies are likely to be shallow and short-lived. A sustained break below $85,000 support would expose Bitcoin to a deeper correction toward $80,000, a psychologically significant level that could trigger further cascading liquidations among remaining leveraged longs.

All Eyes on NFP Data

Looking forward, attention now turns to today’s US nonfarm payrolls release, which could act as a short-term catalyst for risk assets including cryptocurrencies. Markets currently anticipate that December job creation slowed to approximately 60,000 new positions, down from November’s 64,000 gain, while the unemployment rate is expected to tick down marginally to 4.5%.

A weaker-than-expected labour market print would likely reinforce expectations of a more dovish Federal Reserve stance, potentially offering relief to crypto assets by supporting the case for earlier interest rate cuts. Lower interest rates historically reduce the opportunity cost of holding non-yielding assets like Bitcoin, making them more attractive relative to cash and fixed-income alternatives. Conversely, resilient employment data could reinforce the current bearish momentum and prolong pressure on crypto markets by diminishing the likelihood of near-term monetary easing.

The cryptocurrency market’s recent correlation with traditional risk assets has only intensified, with Bitcoin increasingly moving in tandem with tech-heavy equity indices like the Nasdaq. Wednesday’s negative close on the S&P 500 and softer futures trading on Thursday prefigured Bitcoin’s decline, underscoring how tightly digital assets remain tethered to broader macroeconomic sentiment.

For now, the technical and fundamental backdrop points to continued near-term challenges. Without a resumption of institutional ETF inflows or a meaningful shift in macroeconomic conditions, Bitcoin appears likely to remain trapped in its current range—vulnerable to downside breaks but lacking the momentum necessary for a sustained breakout to new highs.

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