Bitcoin price dip below $90K driven by investors bracing for upcoming economic risks
Bitcoin (BTC) fell below $90,000 on Jan. 13, marking a 12.5% decline over seven days. Despite this, derivatives metrics indicated a neutral to bearish outlook, with whales and market makers largely unaffected. Bitcoin futures traded at an 11% annualized premium, above the neutral range, reflecting optimism. The funding rate for perpetual contracts remained positive, although it briefly turned negative amid increased bearish positions and $107 million in liquidated long positions. Investor sentiment weakened following a 4.1% drop in the S&P 500 and concerns over prolonged high interest rates. The US dollar strengthened, indicating a cautious investor stance. MicroStrategy's recent Bitcoin purchase added to its holdings, supported by significant share sales. US-listed Bitcoin ETFs experienced $718 million in outflows, but prior inflows of $1.94 billion suggest mixed institutional interest. Bitcoin has gained 37% over the past 90 days, but risks from a potential global economic slowdown may affect short-term demand as investors prioritize safety.
