- Bitcoin fell to about $86,400 on Jan. 25, marking roughly a 32% drop from last year’s peak above $126,300.
- U.S. spot Bitcoin ETFs saw $1.3 billion in outflows over the prior week, the largest outflow since February 2025.
- Stronger U.S. economic data pushed back expectations for Federal Reserve rate cuts, reducing near-term easing odds.
- Concerns about a potential partial U.S. government shutdown increased market risk aversion.
- Thin weekend liquidity amplified the move; futures open interest sits near $40 billion while funding rates remain broadly neutral.
Bitcoin fell to roughly $86,400 on Sunday, Jan. 25, after several market forces converged, including ETF outflows, shifts in rate-cut expectations and thin weekend liquidity. The drop occurred in global crypto markets and affected institutional and retail participants.
Coin price data came from Coinbase data from TradingView, showing bitcoin down about 32% from its all-time high above $126,300 last year. Saksham Diwan, research analyst at CoinDesk Data, noted that "ETF outflows hit $1.3 billion over the past week – the steepest outflow since February 2025 – as institutional investors reduced exposure to digital assets."
Iliya Kalchev, dispatch analyst for Nexo.com/”>Nexo, said the move reflected multiple causes, writing that "Bitcoin’s weekend dip toward the mid-$86,000s was driven by a convergence of macro repricing, sustained ETF outflows, cross-asset capital rotation, and thin weekend liquidity." He added that stronger U.S. data pushed expectations for Federal Reserve rate cuts further out, noting market odds for a near-term cut declined sharply.
The Federal Open Market Committee meets Jan. 27–28 to announce policy decisions. Kalchev reported market pricing showing "roughly a 97% probability to no Fed rate cut this week, while expectations for a March cut have declined to around 15.6% from about 20% a week ago."
Political risk also factored in. On Jan. 22, the U.S. House sent a $1.2 trillion appropriations bill to the Senate, according to a USA Today article. Disputes over provisions tied to the Department of Homeland Security raised the threat of a partial government shutdown. Marc P. Bernegger of AltAlpha Digital said this contributed to "renewed macro caution," and Patrick Liou of Gemini.com/”>Gemini said "market risk sentiment has been pulled lower by concerns about a potential partial U.S. government shutdown…"
Kalchev also highlighted liquidity dynamics, stating "With fewer institutional participants active, thinner order books allowed relatively modest sell pressure to push prices lower…" He noted futures open interest near $40 billion and that funding rates remained broadly neutral. (ETF outflows = investors removing money from exchange-traded funds; futures open interest = total outstanding futures contracts; funding rates = periodic payments tying perpetual futures to spot prices.)
Overall, analysts described the move as a liquidity-driven repricing rather than a full market unwind.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Silver Surges on Hyperliquid, Rivals BTC/ETH in Volume again
- North Korea-linked deepfake Zoom scam infects macOS systems!
- Chevron Up 11% as Venezuela Ships, Kazakhstan Restarts Ahead
- Pro traders buy protection as gold soars, Bitcoin stalls now
- Microsoft’s Maia 200 AI Chip Aims to Outpace Nvidia Globally
