Why did the crypto market stall after Bitcoin fell below $90,000 amid triple pressure

On January 8th, the cryptocurrency market collectively weakened. The total market capitalization fell from the previous day’s $32.7 trillion to $32 trillion, a decline of about 2%. Bitcoin dropped to around $90,700, while Ethereum even broke below the key support level of $3,200, with a decline of nearly 3.7%. Behind this correction are not single factors but a concentrated release of pressures from liquidity, sentiment, and macro expectations.

Retreat from the High: Short-term Profit-taking Concentrates

The recent consecutive upward movement in the short term planted the seeds for today’s correction. According to the latest news, from January 1 to 7, the overall cryptocurrency market increased by over 8%, with Bitcoin once surging to $94,400. Such a rapid rebound naturally attracted a large amount of chasing-buying funds.

When prices reach a high point, holders begin to realize profits. This is a typical pattern in crypto assets—short-term continuous rises often trigger profit-taking pressure at high levels. Falling from $94,400 to $90,700, although not a huge drop, is enough to wash out some short-term chasing funds.

ETF Capital Flows Shift: Institutional Attitudes Change

More noteworthy is the shift in ETF capital flows. According to SoSoValue data, spot Bitcoin ETFs experienced a net outflow of approximately $730 million over the past two days. Meanwhile, Ethereum ETFs ended their previous continuous inflows, with a single-day net outflow of nearly $100 million. SOL-related ETFs also saw significant capital withdrawals.

This shift is quite interesting. Previously, Bitcoin ETFs maintained an inflow trend, even inflowing $471 million on January 2. But recent data shows that institutional funds have clearly turned cautious. This may indicate that large funds are beginning to reduce their positions at high levels, weakening the market’s upward momentum.

Miner Selling Intensifies Volatility

Supply-side pressures are also at play. US mining company Riot Platforms disclosed that it sold over 1,800 Bitcoin in December to maintain operational cash flow. In an environment with limited trading depth, such concentrated selling often amplifies price volatility. The selling pressure from miners combined with institutional de-risking creates a “double kill” scenario.

Tomorrow’s Employment Data Is a Key Variable

In the short term, the market is waiting for new macro catalysts. The US employment report will be released on January 9, and this data could determine the next trend direction.

According to market expectations, if employment data shows weakness, it could reinforce the Federal Reserve’s future rate cut expectations, which is positive for risk assets like Bitcoin and Ethereum. Conversely, if the data exceeds expectations, it may mean the Fed needs to maintain higher interest rates longer, and the market could face further volatility.

Summary

The current decline is more of a short-term correction rather than a trend reversal. Profit-taking, ETF capital flow shifts, and miner selling combine to cool market sentiment significantly. But from a fundamental perspective, the long-term logic of the crypto market remains unchanged—ongoing institutional ETF launches and supportive policies for digital assets in various countries (Japan’s Finance Minister has already designated 2026 as the “Digital Year”) are quietly underpinning the market.

In the short term, the key is how the US employment report will influence market sentiment. If the data meets or falls short of expectations, a rebound could come quickly; if the data is strong, more time may be needed to digest the information. The increased volatility right now is precisely the market waiting for new directional signals.