Bitcoin drops below US$ 90,000 and triggers US$ 437 million in liquidations

Source: PortaldoBitcoin Original Title: Bitcoin drops below US$ 90,000 and triggers US$ 437 million in liquidations Original Link: The enthusiasm at the start of the year has cooled, as Bitcoin continues its downward trend, reversing most of the gains accumulated in the first week of the year.

Bitcoin has fallen 2.4% in the last 24 hours and is trading at US$ 89,881, according to CoinGecko data. The total market capitalization of cryptocurrencies, which yesterday reached US$ 3.305 trillion, has decreased by 2.6%.

As a result of the main crypto’s decline, total liquidations in the last 24 hours exceeded US$ 437 million. Optimistic investors, who bet on the continuation of the upward movement, are now paying the price, as long positions account for more than 90% of total liquidations.

Ethereum and XRP fell 3.9% and 7.6%, respectively, while memecoins like Pepe and Bonk — which nearly doubled in value in the first week of 2026 — now have declines of 6.6% and 8%.

“The drop of Bitcoin below US$ 90,000 reflects the loss of momentum of the rally observed at the beginning of 2026,” said Illia Otychenko, chief analyst at a trading platform. “New investments at the start of 2026 and favorable geopolitical headlines initially helped, but were not strong enough to sustain an upward trend.”

Other analysts point to a confluence of negative factors.

“Despite the strong start in 2026 and positive structural developments… Bitcoin has faced difficulties maintaining above the US$ 90,000 level — and there are several factors behind this price movement,” said Wenny Cai, COO of a derivatives platform.

She cited risk aversion sentiment in global markets, with investors awaiting important macroeconomic data, such as the US employment report, which keeps risk appetite subdued. “This risk-averse behavior has reflected in Bitcoin trading ranges near the lower end of US$ 90,000 and occasional dips below this level,” Cai said.

Effect of ETFs

Otychenko added that the recent pullback was reinforced by new outflows from spot exchange-traded funds, highlighting the US$ 243 million outflow from US Bitcoin ETFs.

Cai agreed, noting that although it is positive in the long term, “ETF flows, even if structurally favorable, have recently acted as an obstacle in the short term,” reducing immediate buying pressure.

“Market liquidity in crypto remains low, resulting in volatile price movements,” said Otychenko, who believes the scenario could improve if Bitcoin reacts after the release of US employment data.

Cai highlighted the same liquidity issue, noting that conditions are “even more restricted than in previous bull cycles,” which could amplify downward movements even when fundamental demand remains solid.