Bitcoin (BTC) continues to face downward pressure, trading below $95,000 on Friday and heading for its worst weekly performance since late August. A confluence of macroeconomic developments and shifting institutional flows has fueled the correction, with the U.S. Federal Reserve’s hawkish stance on interest rates acting as a primary catalyst. As market sentiment cools, traders are closely watching whether Bitcoin will stabilize or extend its decline toward the critical $90,000 support level.
Bitcoin ETF Outflows Signal Institutional Caution
After reaching a record high of $108,353 earlier in the week, Bitcoin failed to sustain momentum and entered a sharp correction, losing over 9% of its value. One of the most telling signs of shifting sentiment came from U.S. spot Bitcoin ETFs, which recorded their largest single-day outflow since inception—$671.9 million on Thursday.
Prior to this, ETFs had seen three consecutive days of inflows totaling $759.4 million, reinforcing confidence in institutional demand. However, the sudden reversal has raised concerns about short-term institutional appetite.
👉 Discover how market sentiment shifts can impact your crypto strategy
According to Eric Turner, CEO of Messari, ETF inflow trends are now a crucial barometer for Bitcoin’s price stability. “If I’m a trader and I see those ETF inflows start to slow down, I’d say we’ll have some weakness,” Turner told FXStreet in an exclusive interview. He emphasized that ETFs have played a key role in reducing Bitcoin’s historical volatility by introducing a steady stream of institutional capital.
While past corrections have seen intraday drops of 10–20%, recent price action remains relatively contained. Still, the market is now testing whether this new era of institutional involvement can withstand macroeconomic headwinds.
Macro Pressures Mount After Fed’s Hawkish Pivot
The Federal Reserve’s latest monetary policy decision delivered a clear signal: rate cuts in 2025 may be fewer and farther between than previously anticipated. Although the Fed lowered the federal funds rate to a range of 4.25%–4.50% as expected, its updated economic projections indicated a more cautious approach to future easing.
This hawkish tilt weighed heavily on risk assets, with Bitcoin among the hardest hit. The announcement triggered a wave of liquidations across crypto markets, totaling over $1.68 billion—with more than $371.5 million attributed to Bitcoin alone, according to CoinGlass data.
Fed Chair Jerome Powell further dampened crypto sentiment by reiterating that the central bank “is not allowed to own Bitcoin,” shutting the door on any near-term regulatory shift toward digital asset adoption. While not unexpected, the comment reinforced skepticism about institutional endorsement from traditional financial authorities.
Turner noted that early 2025 could bring renewed volatility, with macroeconomic data and ETF flows serving as key indicators for short-term price direction.
Corporate Buyers Remain Committed Amid Price Dip
Despite weakening institutional ETF flows and macro headwinds, corporate demand for Bitcoin remains robust. Major companies continued aggressive accumulation during the recent pullback, signaling long-term confidence in BTC’s value proposition.
On Monday, MicroStrategy (MSTR) announced the purchase of 15,350 additional BTC for approximately $1.5 billion at an average price of $100,386 per coin. The company now holds 439,000 BTC, acquired at an average cost of $61,725, representing a substantial unrealized gain.
Riot Platforms also expanded its holdings, acquiring 667 BTC at an average price of $101,135. The company’s total stash now stands at 17,429 BTC, valued at $1.8 billion.
Marathon Digital (MARA) added 1,627 BTC worth $166 million on Wednesday, while three major whale wallets collectively bought 1,153 BTC ($120 million) following the price drop—underscoring strong demand at lower levels.
Hut 8 Corp (HUT) joined the buying spree by purchasing 990 BTC for $100 million at $101,710 per coin. With this acquisition, its strategic Bitcoin reserve surpassed $1 billion in market value, totaling 10,096 BTC.
These moves highlight a growing trend: while retail and ETF investors may react emotionally to volatility, corporate treasuries are treating Bitcoin as a long-term hedge against inflation and monetary debasement.
👉 See how institutional buying patterns influence market cycles
Technical Outlook: Can Bitcoin Hold $90K?
Bitcoin’s technical indicators point to continued bearish momentum in the near term. The Relative Strength Index (RSI) on the daily chart has dipped to 45—below the neutral 50 threshold—and is trending downward. Meanwhile, the Moving Average Convergence Divergence (MACD) generated a bearish crossover earlier in the week, reinforcing expectations of further downside.
With BTC now trading below the psychologically important $100,000 level, the next major support zone lies around $90,000. A break below this level could trigger additional selling pressure, particularly if macro conditions remain unfavorable.
However, a recovery above $100,000 would invalidate the current bearish structure and potentially reopen the path toward retesting the all-time high of $108,353.
Key Levels to Watch:
- Support: $90,000
- Resistance: $100,000
- Breakout Target: $108,353 (ATH)
Frequently Asked Questions (FAQs)
Q: Why did Bitcoin drop this week?
A: The decline was primarily driven by the Federal Reserve’s hawkish rate-cut outlook and a record outflow from U.S. spot Bitcoin ETFs, which together weakened investor sentiment.
Q: Are companies still buying Bitcoin?
A: Yes—MicroStrategy, Riot Platforms, Marathon Digital, and Hut 8 all increased their BTC holdings this week despite the price drop, signaling strong corporate confidence.
Q: What is causing volatility in Bitcoin right now?
A: Macroeconomic factors—especially central bank policy—and shifts in ETF flows are currently the biggest drivers of Bitcoin’s price swings.
Q: Could Bitcoin fall to $90,000?
A: Yes. Technical indicators suggest further downside is possible, with $90,000 acting as the next major support level if selling pressure continues.
Q: Is this correction a buying opportunity?
A: Many institutional investors appear to think so. Recent whale and corporate purchases during the dip suggest strong belief in Bitcoin’s long-term upside.
Q: How do ETF flows affect Bitcoin’s price?
A: Strong inflows typically boost prices by increasing demand through regulated investment vehicles. Conversely, large outflows can signal waning confidence and trigger short-term declines.
👉 Monitor real-time market movements and identify emerging trends
Final Thoughts
While short-term headwinds have pushed Bitcoin toward $90,000, underlying demand remains resilient. Corporate treasuries continue to accumulate BTC at scale, and whale activity suggests strong conviction at current levels. The interplay between macroeconomic policy and institutional adoption will likely define Bitcoin’s trajectory in early 2025.
For investors, the current correction offers a chance to assess whether recent gains were driven by sustainable fundamentals or speculative momentum. With ETF flows and Fed policy remaining central themes, staying informed and agile will be key in navigating the evolving landscape.
Core Keywords:
Bitcoin price forecast, Bitcoin ETF outflows, Fed rate decision 2025, BTC technical analysis, corporate Bitcoin adoption, Bitcoin support level $90K, macroeconomic impact on crypto