BTC Holds $90K as Exchange Supply Falls to 7-Year Low, ETF Flows Waver

Bitcoin (BTC) opened 2026 above $90,000, maintaining its position in a key psychological range. On-chain data shows a decline in exchange supply to a seven-year low, indicating reduced short-term selling pressure according to on-chain data. This has been supported by consistent accumulation from large holders, as traders look past macroeconomic uncertainty and geopolitical risks according to market analysis.

The price has formed a cup-and-handle pattern on the daily chart, suggesting potential for a continuation higher. A breakout above $94,700 could set the stage for a move toward $100,000 as technical analysis indicates. Despite the bullish technical setup, derivatives leverage remains elevated, which could trigger sharp price swings if support levels are tested according to trading data.

Institutional investors remain active, with Bitcoin spot ETFs attracting net inflows in early January. However, flows have since turned negative, with combined outflows exceeding $1.1 billion in three days according to financial reports. This reversal reflects a shift in risk appetite, driven by fading rate-cut expectations and rising global uncertainties as market analysis shows.

Why the Move Happened

On-chain metrics show Bitcoin holders are moving fewer coins across exchanges and long-term storage solutions. This behavior indicates a preference for holding rather than selling according to on-chain data. Exchange inflows have also dropped sharply, signaling that traders are not using the market as a distribution point as technical analysis indicates.

Bitcoin ETF inflows initially reached $600 million in a single session, suggesting institutional investors are treating the asset as a core allocation according to market reports. However, recent outflows suggest some traders are repositioning as they await clarity on macroeconomic developments as financial data shows.

How Markets Responded

The sharp ETF outflows contrast with continued whale accumulation. Despite Bitcoin ETFs losing more than $1.1 billion in three days, total inflows since launch still stand at $56.65 billion according to financial data. This suggests that while short-term positioning has shifted, the broader trend remains intact as market analysis indicates.

Bitcoin's price structure continues to reflect long-term strength, with the weekly chart forming a consolidation pattern typically associated with strong holder accumulation according to market analysis. Analysts see the $94,500 level as a key near-term target, with a potential path to $100,000 if that level is cleared as technical indicators suggest.

What Analysts Are Watching

Bitcoin's next move will depend on how the market interprets the $94,700 level. A confirmed breakout would validate the cup-and-handle pattern and open the door for a measured move toward $100,000 according to technical analysis. Analysts also track the U.S. Federal Reserve's guidance and upcoming CPI data for clues on when monetary easing might resume as market observers note.

Exchange supply has fallen to a seven-year low, reinforcing the view that Bitcoin is being held rather than sold according to on-chain data. This trend could support further price appreciation, but elevated derivatives leverage means pullbacks remain a risk according to trading analysis.

Mutuum Finance (MUTM) has also made progress, with the Halborn Security audit for its V1 protocol completed according to company reports. The project is now closer to functional deployment, with plans to launch on the Sepolia testnet ahead of mainnet deployment as announced.

Bitcoin's price remains above $90,000 as whale activity and institutional positioning provide support. While ETF flows have turned negative, the broader trend suggests continued accumulation by long-term holders. Market watchers are now focused on how Bitcoin will react to the $94,700 level and broader macroeconomic developments.