Bitcoin Price Analysis: BTC Tests Key Support, ETFs See Sharp Outflows As Risk Appetite Weakens

Bitcoin (BTC) is testing the $90,000 support level as it consolidates between the $88,000 and $92,000 level. The flagship cryptocurrency dipped below $90,000 on Thursday and Friday but recovered to reclaim $90,000 on both days. The price is marginally up during the ongoing session, trading around $90,593. 

Meanwhile, spot Bitcoin ETFs reversed early gains, recording four consecutive days of outflows as rising geopolitical risks and dwindling chances of a rate cut weighed on investor sentiment. 

Prediction Markets Kick Up Political Storm 

Rep. Ritchie Torres is preparing legislation to restrict US officials from participating in prediction markets. The move comes after the platforms came under intense scrutiny after a lucrative bet linked to the ouster and capture of Venezuelan President Nicolas Maduro, raising concerns bout insider access to sensitive or even classified information. Torres has proposed the Public Integrity in Financial Prediction Markets Act of 2026, which would bar federal officials from trading contracts tied to political or policy outcomes when they have access to non-public information. 

DOJ Bitcoin Sale Sparks Policy Questions 

The US Department of Justice came under flak after selling 57 BTC forfeited by Samourai Wallet developers. The sale comes despite an executive order requiring all forfeited Bitcoin to be transferred to the Strategic Bitcoin Reserve rather than being liquidated. The sale was reportedly completed through Coinbase Prime and has sparked debate about whether federal agencies are taking Bitcoin’s evolving role as a strategic asset seriously. According to market watchers, the disregard or misinterpretation of executive orders governing digital assets could shake confidence in Washington’s crypto policy.

Spot Bitcoin ETFs Record Sharp Outflows 

Spot Bitcoin ETFs reversed early gains, recording sharp outflows as investors pulled a combined $681 million over the first full trading week of 2026. According to data from SoSoValue, spot Bitcoin ETFs saw four consecutive days of outflows starting Tuesday, with the largest redemption of $486 million occurring on Wednesday. The investment products registered $398 million in net outflows on Thursday and $249 million on Friday. The sharp reversal came after Bitcoin ETFs started the year in positive territory, recording $471 million in net inflows on Thursday and $249 million on Friday. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) is marginally up during the ongoing session, consolidating around the $90,000 mark. The flagship cryptocurrency briefly fell below $90,000 on Thursday and Friday but reclaimed $90,000 on both occasions. Analysts highlighted that BTC’s drawdown was much milder than expected as traders rotated into altcoins. Riya Sehgal, research analyst at Delta Exchange, said the market started 2026 on a mixed note. Despite improving sentiment, investors remain cautious as markets await a new catalyst. 

Meanwhile, Vincent Liu, chief investment officer at trading firm Kronos Research, blamed macro uncertainty as the main reason behind sharp ETF outflows this week. According to Liu, shifting expectations around monetary policy and global risk are weighing on investor sentiment and positioning. 

BTC started the previous week in the red despite reaching an intraday high of $90,325, losing momentum, and settling at $87,110, down almost 1%. The price recovered on Tuesday, rising 1.48% to $88,397. However, selling pressure returned on Wednesday as BTC fell 1.02% to $87,497. Bullish sentiment returned on Thursday as the price rose 1.42% to $88,738. Buyers retained control on Friday as BTC rose 1.37% and settled at $89,957.

Source: TradingView

Price action remained positive over the weekend as BTC rose 0.71% on Saturday and 0.99% on Sunday to reclaim $90,000 and settle at $91,494. Bullish sentiment intensified on Monday as BTC rose nearly 3%, crossing $93,000 to $93,870. Selling pressure returned on Tuesday as BTC fell to a low of $91,203. However, it reclaimed $93,000 and settled at $93,772, ultimately registering a marginal decline. Selling pressure intensified on Wednesday as the price fell nearly 3% to $91,279. BTC briefly slipped below $90,000 on Thursday, dropping to a low of $89,200 before reclaiming $90,000 and settling at $91,026. The price witnessed volatility on Friday as buyers and sellers struggled to establish control. BTC ultimately registered a drop of 0.56% to $90,515. The price is marginally up during the ongoing session, trading around $90,548.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.