|

Bitcoin Price Forecast: BTC struggles below $90,000 as ETF outflows persist and options expiry looms

  • Bitcoin hovers around $87,700 after failing to break the $90,000 resistance this week.
  • US-listed spot ETFs record an outflow of $175.29 million on Wednesday, marking the fifth consecutive day of withdrawals.
  • Market volatility remains high, with nearly $23.47 billion in BTC options expiring Friday, which could trigger sharp price swings.

Bitcoin (BTC) steadies around $87,700 at the time of writing on Thursday after failing to reclaim a key psychological level earlier this week. Institutional demand continues to weaken as spot Bitcoin Exchange-Traded Funds (ETFs) recorded their fifth consecutive day of withdrawals. Traders should remain cautious ahead of Friday’s large options expiry, which could bring fresh volatility and direction to the largest cryptocurrency by market capitalization.

Bitcoin’s institutional demand continues to fade

Institutional demand has continued to weaken so far this week. SoSoValue data show that Spot Bitcoin ETFs recorded an outflow of $175.29 million on Wednesday,  marking the fifth consecutive day of withdrawals since December 18. If these outflows continue and intensify, the Bitcoin price could see further correction.

Total Bitcoin spot ETF net inflow daily chart. Source: SoSoValue

Calm before the storm 

Derbit data shows that on Friday, $23.47 billion in BTC option contracts are set to expire. BTC derivatives traders are positioning heavily around higher strike prices, with call open interest significantly outweighing puts, as indicated by the low put/call ratio of 0.35, signalling a broadly bullish bias. 

In addition, the max pain price of $95,000 suggests that option sellers would benefit most if BTC gravitates toward this level by expiry, as the most contracts would expire worthless there. 

QCP Capital’s report this week highlighted that although leveraged positioning has come down, the contraction in market depth means squeeze risk in either direction remains elevated. 

“Historically, BTC has tended to experience 5 to 7% swings during the Christmas period, a pattern often linked to year-end options expiries rather than fresh fundamental catalysts,” said QCP’s analyst.

Bitcoin Price Forecast: BTC steadies after rejection from key resistance

Bitcoin price was retested at the psychological $90,000 level on Monday and declined slightly the following day. On Wednesday, BTC stabilized at around $87,000. As of Thursday, BTC hovers around $87,700.

If BTC continues its correction, it could extend the decline toward the key support at $85,569.

The Relative Strength Index (RSI) is 43, below its neutral level of 50, indicating that bearish momentum is gaining traction. The Moving Average Convergence Divergence indicator showed a bullish crossover last week; however, the falling green histogram bars indicate fading bullish momentum.

BTC/USDT daily chart 

On the other hand, if BTC closes above the $90,000, it could extend the recovery toward the next resistance at $94,253.

Crypto ETF FAQs

An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.

Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.

Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.

The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.

Author

Manish Chhetri

Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.

More from Manish Chhetri
Share:

Editor's Picks

Grass 20% bullish breakout defies broader market weakness

Grass (GRASS) is edging up above $0.30 at the time of writing on Monday. The token’s notable 20% intraday surge stands out amid heightened volatility in the broader crypto market.

XRP slides as US-Iran war weakens sentiment

Ripple remains under pressure, trading around $1.35 at the time of writing on Monday. The remittance token extended its down leg to $1.27 on Saturday after the US, in collaboration with Israel, launched attacks on Iran, killing the nation’s Supreme Leader, Ali Khamenei.

Crypto Today: Bitcoin pares losses, Ethereum and XRP drift lower as Middle East conflict pressures risk assets

Bitcoin, Ethereum and Ripple remain on edge as the Israel-US war on Iran risk-off sentiment. The Crypto King trades above $66,000 at the time of writing on Monday, but is struggling to break through the seller congestion around $67,000.

Bitcoin on brink of breakdown amid US-Iran war

Bitcoin (BTC) remains under pressure near the key support level of $65,700. Trading at $66,400 at the time of writing on Monday, a breakdown below this critical level would suggest a deeper correction ahead.

Bitcoin Price Annual Forecast: BTC holds long-term bullish structure heading into 2026

Bitcoin (BTC) is wrapping up 2025 as one of its most eventful years, defined by unprecedented institutional participation, major regulatory developments, and extreme price volatility.

Bitcoin: Another month of losses, and it’s been five

Bitcoin (BTC) price is stabilizing around $68,000 at the time of writing on Friday, but the Crypto King is poised to close February on a fragile footing, marking its fifth consecutive month of losses since October and a rare start to the year with back-to-back monthly corrections.