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Institutional Withdrawal Raises Doubts About Bitcoin Maintaining $90K

Institutional Withdrawal Raises Doubts About Bitcoin Maintaining $90K

Bitget-RWA2025/09/25 12:26
By:Coin World

- Bitcoin ETFs faced $582M net outflows in Jan 2025, led by Fidelity, Ark Invest, and BlackRock, signaling waning institutional confidence. - BTC price dropped below $94K, testing $92,654 support as macroeconomic risks (tariffs, Fed policy) pressured risk appetite. - Analysts warn $90K could be next target if $92,500 resistance fails, with bullish potential if $95,119 is reclaimed. - Market sentiment remains split: $190K rally forecasts coexist with bearish warnings to $93,600 amid geopolitical and inflati

Institutional Withdrawal Raises Doubts About Bitcoin Maintaining $90K image 0

Source: [1]

Bears Eye $90K as ETFs Register $582M Withdrawals

[2] Bitcoin (BTC USD) Price Forecast: Surge to $190k or Plunge to …

[3] Bitcoin Price Sets Sights on $90K as Blackrock-led ETFs Acquire $512M

[4] Bitcoin Faces Resistance Near $90K Amid U.S. Tariff Concerns …

[5] Market Mood, Bitcoin ETFs: Bullish or Bearish Market? …

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According to TheCryptoBasic, Bitcoin ETFs entered a period of reduced activity in late 2024, with January 2025 alone seeing $582 million in net outflows. The largest withdrawals came from Fidelity’s FBTC ($258.69 million),

Invest ($148.3 million), and ($124 million), reflecting a drop in institutional enthusiasm for the sector. This pattern mirrors the broader market unease, as Bitcoin’s value dipped under $94,000 and approached crucial support at $92,654. Experts point to macroeconomic instability, such as new U.S. tariffs and shifting risk appetite, as reasons for institutions reducing their positions.

On the 4-hour chart, Bitcoin shows a bearish reversal from a major supply area near $102,557, while the RSI indicates bullish divergence just above oversold territory. Still, bearish signals from the 50- and 100-day EMAs suggest continued downward momentum. Technical analysts warn that if Bitcoin falls below $92,654, it could slide toward the $90,000 psychological mark, but a move above $95,119 could revive bullish sentiment.

The recent drop in ETF inflows stands in contrast to earlier optimism. In March 2025, Bitcoin ETFs saw $512 million in new investments over three days, spurred by BlackRock-led buying and a favorable Fed rate pause. At that point, Bitcoin jumped 4% to a 10-day high of $85,900, driven by institutional interest and a short squeeze near $85,000. However, CoinTelegraph data shows that U.S. spot Bitcoin ETFs experienced $2.6 billion in net outflows in late February 2025, marking four straight weeks of negative flows. This reversal coincided with the announcement of tariffs from the Trump era, which heightened worries about inflation and economic stability.

Market outlook is divided. Kristian Haralampiev of Nexo noted that while Bitcoin ETFs have brought some stability, their effect has been "moderate," with BTC consolidating around $63,000 in October 2024. The Fear & Greed Index, leaning toward greed, signals ongoing optimism, but Haralampiev warned that geopolitical issues and gold’s record prices could weigh on the market. He described ETFs as a "double-edged sword," offering liquidity but potentially reducing crypto’s speculative draw.

Forecasts for Bitcoin’s price are highly varied. TheCoinRepublic’s bullish scenario sees Bitcoin climbing to $190,000 if it maintains support at $115,500, based on past patterns. On the other hand, analyst Ali Martinez suggests that a break below $115,440 could send prices down to $93,600. Coingape, meanwhile, stressed that reaching $90,000 depends on overcoming resistance at $92,500 and managing short-term macroeconomic volatility.

In the near future, institutional interest and global economic conditions are likely to shape Bitcoin’s direction. A dovish Federal Reserve and possible rate cuts could support risk assets, but renewed tariffs and trade tensions might offset these effects. For now, Bitcoin ETF flows serve as a gauge of institutional sentiment, with ongoing outflows pointing to a bearish stance until there is more economic certainty.

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Source: [1] title1

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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