BTC Price Pullback Weighs on Leading Bullish Positions as ETF Flows and Whale Behavior Signal Cautious Sentiment

Bitcoin (BTC) fell below $90,000 amid market jitters related to US jobs data and crypto options expiry. BTC price reached a 24-hour low of $89,578 and high of $92,189, signaling short-term uncertainty in the digital asset market. Ethereum (ETH) also saw a pullback to the key $3,050 level, with further support near $3,020–$3,050.

Grayscale Investments filed to enable options trading on its CoinDesk Crypto 5 ETF (GDLC), which tracks Bitcoin, Ethereum, XRP, Solana (SOL), and Cardano (ADA). The ETF has a 75.20% allocation to Bitcoin and 15.69% to Ethereum, with additional exposure to XRP, SOL, and ADA. NYSE American submitted the proposal to the SEC, seeking approval for physically settled options contracts on GDLC shares.

BTC ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT), experienced recent inflows of $287.4 million in a single day, the largest since early October 2025. This activity was attributed to institutional rebalancing and a renewed interest in Bitcoin as a geopolitical hedge. However, other ETFs, such as Fidelity’s FBTC and Bitwise’s BITB, also saw positive inflows, reinforcing the broader trend.

Why Did This Happen?

The recent market movement was partially driven by macroeconomic events, including the Trump administration’s capture of Venezuelan President Nicolás Maduro and the resulting energy market volatility. This led to a shift in institutional capital back into Bitcoin ETFs, as investors positioned for a potential bullish scenario.

Institutional activity was also influenced by year-end portfolio reallocations and tax-loss harvesting cycles, which concluded in early 2026. As result, investors began re-accumulating Bitcoin exposure via ETFs, with BlackRock’s IBIT as the leading product.

How Did Markets Respond?

Despite ETF inflows, on-chain data suggests continued caution among Bitcoin whales. Wallets holding between 1,000 and 10,000 BTC reduced their balances in the past year, reaching 220,000 BTC. This is the fastest decline since 2023 and indicates that large investors are not aggressively buying the dip.

Exchange activity also showed mixed signals. The BTC exchange whale ratio climbed to 0.504, often associated with increased selling pressure. Binance accounted for 71% of stablecoin deposits during the period, suggesting continued institutional movement to exchanges ahead of potential price corrections.

BTC ETFs recorded $681 million in net outflows last week, with January 7 marking the worst day at $486 million. These outflows contrast with the inflows seen in early January, highlighting the volatile nature of institutional demand.

What Are Analysts Watching Next?

Technical indicators for Bitcoin suggest cautious optimism. BTC broke a symmetrical consolidation pattern on the daily chart, confirming a short-term extension to the upside. However, the asset remains about 26–27% below its October peak, with the 23.6% Fibonacci retracement near $91,500 as a critical support level.

Ethereum’s price action also shows vulnerability, with the $3,050 level now in focus. Analysts warn that a failure to hold above this level could lead to a decline toward $3,020–$3,050. XRP’s price, at $2.13–$2.16, is also under scrutiny as it approaches key Fibonacci levels.

Market participants are closely monitoring derivatives positioning and options activity for signs of renewed conviction. Put skew has compressed, and rising interest in long-dated calls suggests traders are willing to own tail-up scenarios into 2026. However, intraday selling has also been noted, with participants fading rallies back toward support.

The regulatory environment remains a key watchpoint. Approval of options trading on crypto ETFs could significantly impact market structure and investor behavior. BlackRock’s IBIT has become a reference vehicle for institutional Bitcoin exposure, with nearly $24.7 billion in cumulative inflows in 2025.

BTC’s ability to hold above $87,200 will be critical in the coming weeks. Analysts highlight that a sustained break below this level could open the door to a decline toward $69,230. For now, the market remains in a state of structural support from ETF flows but with emotionally cautious positioning.