Bitcoin Holds Near $92K as ETF Demand Offsets Sell-Off Pressure

ETF inflows cushion Bitcoin near $92K, but macro risks and options hedging point to continued short-term volatility.

Bitcoin’s price outlook remains mixed after a sharp reversal earlier this week, with analysts divided between steady long-term signals and near-term risks. Strong demand from spot Bitcoin exchange-traded funds has helped absorb selling pressure, even as macroeconomic tensions unsettle markets.

Price action around the $92,000 level has become a key focus for traders assessing whether recent weakness is corrective or the start of a deeper move.

Bitcoin Price Stabilizes After Heavy Liquidations

Bitcoin stabilized near $92,000 after a rough Monday’s sell-off that wiped off significant leverage from the market. During that time, the market recorded more than $865 million in liquidations.

Experts linked the drop to the rising U.S.-Europe trade tensions. Prices recovered quickly following the selling spree, suggesting buyers remain active at current levels. Analysts at digital assets investment firm ZeroCap said Bitcoin’s ability to hold this range points to solid demand beneath the surface.

“The market recovered relatively quickly with Bitcoin finding its feet in this range, suggesting a strong underlying bid and that much of this macro noise is priced,” the report stated.

As reported, current conditions resemble an early phase of a risk-on shift. And this trend is supported by structural inflows rather than short-term speculation.

Stability Backed by ETFs, Even as Options Markets Flash Caution

Spot BTC ETF demand has emerged as a key stabilizing factor. Net inflows last week reached their highest level in three months, reinforcing the view that institutional interest remains intact despite market swings.

ZeroCap analysts noted these flows have shown greater staying power than leveraged positioning, which tends to unwind quickly during periods of stress.

Still, not all market watchers share an optimistic near-term view. Sean Dawson, head of research at on-chain options platform Derive, warned that volatility is likely to remain elevated.

He pointed to a declining 25-delta skew, indicating increased demand for downside protection through put options. Such positioning reflects caution among traders expecting further price swings.

Macro and Policy Risks Weigh on Bitcoin Sentiment

Escalating geopolitical trade tensions between the U.S. and Europe have continued to cloud Bitcoin’s price movement. Regulatory uncertainty has also lingered, with delays around the CLARITY Act adding to investor unease.

A pending Supreme Court ruling on the legality of President Donald Trump’s global tariff policy has further raised the stakes.

Trump has threatened tariffs of up to 25% on European imports starting February 1 if objections persist. Farzam Ehsani, CEO of crypto trading platform VALR, said tariff threats have historically pressured digital and other risk assets.

According to Ehsani, markets are pricing in the chance that prolonged disputes could strain trade relationships and weigh on sentiment, even as some on-chain data shows early stabilization.

OG Wallet Sale and Rising Liquidations Weigh on Bitcoin Price

At the time of writing, Bitcoin is exchanging hands at $91,241 after breaking below $92,000 on Tuesday morning. For now, market sentiment remains pessimistic, fueled by a high Greed score.

_Image Source: __TradingView _

The OG coin is hovering below the 200-day SMA, after posting only 14 green days in the past month. Intraday liquidations totaled $14.59 million, split between $9.55 million in long positions and $5.04 million in shorts.

Adding to the pressure, a long-term holder known as “5K BTC OG” sold 500 BTC for $47.77 million. Since December 2024, the wallet has offloaded 2,500 BTC, worth about $265 million, reinforcing a cautious tone amid persistent geopolitical and regulatory risks.