Analysis: Bitcoin's current round of decline is mainly due to weakening upward momentum from the beginning of the year, increasing risk aversion ahead of the US employment data release, and ETF outflows.

BlockBeats News, January 8th, according to Decrypt, as Bitcoin continues to fall, the New Year's optimism has nearly dissipated, and most of the gains recorded in the first week have been retraced. According to CoinGecko data, Bitcoin has fallen by 2.4% in the past 24 hours, now trading at $89,881. The total liquidations in the past 24 hours have exceeded $477 million.

Illia Otychenko, Chief Analyst at CEX.IO, stated: "Bitcoin breaking below $90,000 reflects a weakening momentum of the early-year rally. The additional fund inflow at the beginning of 2026 and mildly positive geopolitical news initially provided support, but the strength was not sufficient to sustain a continuous rebound."

Wenny Cai, COO of SynFutures, said: "Despite a strong start to 2026 and the continued structural positives, Bitcoin has always struggled to firmly hold above $90,000, with multiple factors at play behind this. She pointed out that the global market is showing an increase in risk aversion sentiment, with investors awaiting key macro indicators, including US jobs data, suppressing risk appetite. This risk-averse behavior is reflected in Bitcoin mainly oscillating in the mid-$90,000 range and occasionally dropping below $90,000."

Otychenko also stated that spot Bitcoin ETFs have seen further outflows, further reinforcing the recent pullback trend, with the US Bitcoin spot ETF experiencing a single-day net outflow of $243 million. Cryptocurrency market liquidity remains scarce, leading to sharp price fluctuations. With the release of tomorrow's US jobs data, if Bitcoin can rebound, the market outlook may improve.