Bitcoin ETFs: Alarming Slowdown Triggers Fears of $90K BTC Price Plunge

The cryptocurrency world watches closely as Bitcoin (BTC) experiences significant market shifts. Recent data reveals a concerning slowdown in spot Bitcoin ETFs, impacting institutional interest. This change sparks widespread discussion among analysts. Many now wonder if a deeper Bitcoin correction is imminent. Could the BTC price plummet further, potentially reaching the $90,000 mark? This detailed analysis explores the current market dynamics, key indicators, and expert predictions shaping Bitcoin’s immediate future.

Understanding the Bitcoin ETFs Slowdown

US spot Bitcoin ETFs recently showed a notable cooling trend. These exchange-traded funds allow traditional investors to gain exposure to Bitcoin without directly holding the asset. Initially, these ETFs experienced robust inflows. However, that momentum has waned. This shift signals a potential decrease in institutional appetite for the leading cryptocurrency.

• Net inflows into spot Bitcoin ETFs dropped significantly.
• Last week, flows fell 54% to $931.4 million.
• This contrasts sharply with the $2.03 billion recorded the week prior.

Glassnode, a prominent on-chain analytics provider, highlighted this development. Their latest Weekly Market Impulse report detailed the cooling. While overall accumulation remains positive, the slowdown suggests a pause in institutional engagement. This behavior marks a clear departure from early September. During that period, healthy ETF inflows consistently accompanied Bitcoin’s steady price increases.

Between September 2 and September 18, the BTC price surged by 10%. It approached $118,000. Over these eight trading days, net inflows exceeded $2.9 billion, according to Farside Investors. This period included one of the largest daily net inflows in two months, totaling over $741.1 million. Such strong demand is now notably absent, raising questions about future price movements. The current landscape indicates a cautious stance from large institutional players.

Institutional Demand Wanes, BTC Price Reacts

The reduction in institutional demand directly impacts the broader crypto market. Institutional investors often bring significant capital and stability. Their reduced exposure to spot Bitcoin ETFs follows recent weakness in the BTC price. This connection is critical. When large funds pull back, it can amplify downward pressure. Smaller retail investors often follow institutional sentiment. Consequently, a cooling bullish sentiment spreads across the market.

The on-chain data provider Glassnode noted the current situation. “While overall accumulation remains intact, the slowdown suggests a pause in institutional demand,” they stated. This pause is a key indicator. It suggests that major players are adopting a wait-and-see approach. They might be waiting for clearer bullish signals. Alternatively, they could be preparing for further price declines. This cautious stance directly affects Bitcoin’s immediate price trajectory.

Furthermore, the spot taker Cumulative Volume Delta (CVD) indicator provides additional insight. This metric tracks the cumulative difference between market buys and sells over 90 days. Since mid-August, the spot taker CVD has remained “taker sell dominant.” This means retail traders have consistently sold more BTC than they have bought. This trend reinforces a risk-off behavior. It indicates a broad lack of conviction among individual investors. The combination of weak institutional and retail demand creates a challenging environment for Bitcoin’s price stability.

Key Technical Indicators Signal Potential Bitcoin Correction

Several technical indicators now point towards a potential deeper Bitcoin correction. These tools help analysts predict future price movements. Understanding them is crucial for navigating the current market uncertainty. The aforementioned spot taker CVD is one such critical indicator. Its persistent “sell dominant” status is a bearish signal. It suggests selling pressure continues to outweigh buying interest. This condition often precedes price declines.

Another significant metric is the Cost Basis Quantile. Glassnode uses this metric to gauge market risk levels and potential price action zones for Bitcoin. The BTC price recently slipped below the 0.95 quantile cost basis, currently around $115,300. This move is particularly concerning. Glassnode explained its implications: “Reclaiming it would signal renewed strength, but failure to do so risks a drift toward lower supports around $105K–$90K.” This statement highlights the precarious position Bitcoin now occupies. A sustained move below this quantile indicates increased risk.

Moreover, chart patterns offer further bearish perspectives. Michael van de Poppe, founder of MC Capital, shared his analysis. He observed a lack of strength in Bitcoin after a strong day. His charts suggest a critical support zone between $112,000 and $110,000. If Bitcoin fails to hold this level, it could drop significantly. He identifies the $103,000-$100,000 range as a potential demand zone. This area might offer a good opportunity for new buys. However, reaching it implies further downside first.

Analysts Eye Deeper Bitcoin Correction Targets

Market analysts are increasingly vocal about potential downside targets for the BTC price. The sentiment has shifted from cautious optimism to mounting pessimism. Michael van de Poppe’s analysis suggests a move towards the $103,000-$100,000 demand zone. He believes this could be the final dip before a potential recovery. “I would assume that we’ll be going to get some more downside and then we’re done for the current period, meaning that we’ll be in up-only mode,” he stated. This outlook offers a glimmer of hope, but only after enduring further price depreciation.

Fellow analyst AlphaBTC presented a more immediate concern. His hourly candle chart shows the BTC/USD pair trading within a descending parallel channel. This pattern often signals continued downward momentum. According to AlphaBTC, if the $112,000 support fails to hold, Bitcoin could target the channel’s lower boundary. This level sits around $108,000. A breach of this support could lead to an even “deeper flush.” This deeper correction might push the price into the $105,000-$100,000 range. These are critical levels for traders and investors to monitor closely.

The combination of weakening institutional demand and technical breakdowns creates a compelling case for a deeper correction. The failure to reclaim key support levels strengthens the bearish narrative. The market awaits a clear catalyst to reverse this trend. Without it, the path of least resistance appears to be downwards. This ongoing struggle for price stability keeps the crypto market on edge. Investors are advised to remain vigilant.

The Looming Threat of a $90,000 BTC Price Plunge

The most alarming prediction circulating among analysts is a potential drop to $90,000. This target stems from multiple converging bearish signals. The persistent slowdown in Bitcoin ETFs is a primary driver. It reflects a significant lack of conviction from large institutional investors. Furthermore, the technical indicators strongly support this dire outlook. The Spot Taker CVD remaining sell-dominant, for instance, underscores consistent selling pressure.

Glassnode’s analysis of the Cost Basis Quantile reinforces this fear. The failure of BTC price to reclaim the 0.95 quantile at $115,300 signals continued risk. This could indeed lead to a drift towards lower supports, specifically the $105,000-$90,000 range. This aligns with other technical observations. As Crypto News Insights previously reported, a double top pattern also points to a target near $90,000. This pattern would activate if the crucial support level at $107,000 fails to hold. A double top is a bearish reversal pattern. It typically indicates that an asset’s price has reached a resistance level twice and failed to break through, leading to a significant downturn.

The confluence of these factors paints a challenging picture for Bitcoin. Weakening institutional interest, persistent selling by retail traders, and critical technical breakdowns all contribute to the bearish sentiment. A break below key support levels could trigger a cascading effect. This might accelerate the Bitcoin correction. Investors must therefore exercise extreme caution. They should conduct thorough research before making any decisions. The current market environment demands careful consideration of risk. The potential for a $90,000 BTC price is a serious concern. It highlights the inherent volatility of the crypto market.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.