Bitcoin’s drop below the psychological 90,000 dollars mark caused the Bitcoin liquidations exceed 477 million this January 8. Analyst Akash Girimath reported that the movement wiped out the initial optimism of 2026 quite drastically. Most of the losses affected traders with leveraged bullish positions in the market. Therefore, the market experienced a cascade of forced sales across various global exchange platforms.
The 2.4% decline in the last 24 hours dragged down the main criptocurrency of the digital financial sector. Likewise, Ethereum and XRP recorded drops of 3.9% and 7.6% respectively during the operational session. Data from CoinGlass confirms a dominant selling pressure on assets with higher capitalization levels. Furthermore, long positions represented more than ninety percent of all executed liquidations today. In this way, bullish sentiment faded quickly due to the lack of sufficient liquidity.
On the other hand, the volume of outflows from ETF funds reached concerning figures for institutional investors. Bitcoin-based financial products in the United States recorded net withdrawals totaling 243 million dollars. This institutional capital outflow reduced the buying pressure needed to sustain the current price. For this reason, the technical structure of the asset shows signs of weakness in primary support levels.
An uncertain macroeconomic environment halts the digital market’s bullish momentum
Global risk aversion intensified ahead of the release of employment data in the United States. However, the lack of new positive catalysts prevented the price from recovering the 95,000 dollars zone. Market liquidity remains extremely thin facilitating sharp and volatile price movements in the short term. Therefore, investors prefer to maintain a cautious stance given the international economic and political uncertainty.
Meme coins like Pepe and Bonk also suffered significant pullbacks after their rally last week. These deep corrections suggest that traders are taking quick profits in high volatility sectors. The market cooling affects the confidence of retail participants who expected a sustained rally. For this reason, the rotation of capital towards safe-haven assets seems to be the predominant trend right now.
Can the 88,000 dollars support prevent a further drop towards December levels?
Current consolidation will determine if the asset can establish a solid floor before next week. According to experts from CEX.IO, the lack of momentum early in the year suggests a long lateralization phase. The market needs a stabilization of inflows into Bitcoin institutional funds quite soon. Therefore, the weekly close will be decisive in defining the price trajectory in the short term.
The resolution of geopolitical tensions and macroeconomic data will dictate the pace of financial recovery. Bitcoin whales seem to be accumulating at low levels but without the necessary strength to reverse the trend. Surpassing the 94,000 dollars resistance is vital to resume the previous bullish cycle effectively. Finally, traders must manage risk with prudence given the possibility of new unexpected volatility spikes.
