Bitcoin has slipped back below the $90,000 level after rallying in the opening days of 2026, as early optimism tied to exchange-traded fund inflows gave way to renewed caution across markets. BTC rose sharply at the start of the year, briefly approaching $95,000 after roughly $1.2 billion flowed into U.S. spot bitcoin ETFs over the first two trading days, according to The Block’s price page.
The rally has since lost momentum, with prices falling under $90,000 on Thursday as ETF flows turned negative for a second consecutive session and broader risk appetite cooled. Paul Howard, senior director at Wincent, said the pullback fits with the recent market structure. He said bitcoin and ether could drift lower in the near term to fill a gap on CME futures, adding that macro pressures remain the dominant driver of price action.
“With the start of the year, ETF inflows and Tom Lee’s ETH purchases having helped the early 2026 market, the next natural step for BTC and ETH is likely a break below $91,000 to fill the CME gap,” Howard told The Block. Wincent’s expert described current conditions as choppy, favoring short-term trading rather than sustained directional bets, and noted that January has historically been a relatively flat month for crypto prices.
The retracement comes as markets continue to digest bitcoin’s lackluster performance in 2025. Indeed, BTC ended last year down about 6.3%, making it the worst-performing major asset class and marking the first time it failed to outperform in its typical four-year cycle, according to K33. It was also only the second year on record in which bitcoin posted negative returns while the S&P 500 rose meaningfully, a backdrop analysts say has shaped early-2026 positioning.
