Analysis: The main reasons for Bitcoin's current decline are the weakening of upward momentum at the beginning of the year, increased risk aversion ahead of the US employment data release, and ETF capital outflows.

On January 8, according to Decrypt, as Bitcoin continues to decline, the New Year’s optimism has almost dissipated, and most of the gains recorded in the first week have been retraced. According to CoinGecko data, Bitcoin has fallen 2.4% in the past 24 hours and is currently trading at $89,881. Over the past 24 hours, the total liquidation across the network has exceeded $477 million. Illia Otychenko, Chief Analyst at CEX.IO, stated: “Bitcoin falling below $90,000 reflects a weakening of the initial market momentum at the start of the year. The influx of new funds and the somewhat favorable geopolitical news at the beginning of 2026 initially provided support, but not enough to sustain a continuous rebound.” Wenny Cai, Chief Operating Officer at SynFutures, said: “Although 2026 started strong and structural positives continue to exist, Bitcoin has consistently struggled to effectively stay above $90,000, due to multiple factors working together.” She pointed out that the global markets are generally showing increased risk aversion, with investors awaiting key macroeconomic indicators including U.S. employment data, which has suppressed risk appetite. This risk aversion is reflected in Bitcoin mainly oscillating around the slightly above $90,000 range and occasionally falling below $90,000. Otychenko also mentioned that spot Bitcoin ETFs are experiencing another outflow of funds, further reinforcing the recent pullback trend, with the U.S. Bitcoin spot ETF experiencing a single-day net outflow of $243 million.