On January 28, Bitcoin experienced a brief surge above the $90,000 mark before pulling back to trade within a range of $89,300 to $89,600. During this peak moment, its market capitalization climbed to an impressive $1.78 trillion.
ETF Trends Defy Expectations
The cryptocurrency’s spike past $90,000 was driven by news that Bitcoin transfers into Binance—the largest crypto exchange globally—have dropped sharply to an average monthly volume of just 5,700 BTC. This represents the lowest inflow level seen in four years. After dipping as low as $87,000 earlier in the day, Bitcoin’s price rallied about 2%, although it quickly encountered resistance.
Following this short-lived breakout above $90K, Bitcoin settled back between $89,300 and $89,600 with daily trading volumes remaining modest at under $50 billion. At its intraday high point around 1 p.m. EST, the asset’s market cap expanded by roughly $40 billion.
This rebound took place despite waning enthusiasm for spot Bitcoin ETFs; after net inflows of only about $6.86 million on January 26th turned negative shortly thereafter with outflows totaling approximately $147 million. BlackRock’s IBIT fund accounted for over two-thirds of these redemptions at nearly $103 million withdrawn recently—a trend that has historically signaled upcoming price declines but did not prevent today’s resilience.
For further insights: Bitcoin Stalls at $89K as Consolidation Continues: Will the ‘February Factor’ Break the Deadlock?
A Shift Toward Long-Term Holding Patterns
The positive market response is largely attributed to a significant reduction in Binance deposits—down more than half from their typical average near 12,000 BTC per month according to on-chain data analysis tools. Such decreases often indicate investors are moving coins off exchanges into cold wallets for long-term storage rather than selling immediately.
This supply tightening is particularly notable given it coincides with Bitcoin recovering from a steep drop exceeding 30% since reaching its all-time high just above $126K on October 6th last year. Market observers suggest this behavior reflects more than temporary fluctuations; social media analyst Darkfost commented that these lower inflows appear increasingly structural rather than fleeting phenomena.
“For several months now,” Darkfost shared via X (formerly Twitter), “inflows have consistently stayed below their historical norm around twelve thousand BTC monthly.”
As of late January 28th data shows technical indicators revealing tension between short-term bearish fatigue and underlying long-term strength supported by reduced exchange supply—though breaking through psychological resistance near $90K remains challenging.
Tensions Evident in Technical Indicators
Currently trading slightly beneath both its 50-day and 200-day exponential moving averages across multiple timeframes on daily charts reveals price compression or consolidation conditions for Bitcoin.
The critical support zone between $84K and $87K continues preserving bullish momentum overall while failure so far to decisively close beyond approximately $91,,… 's EMA keeps bears controlling near-term moves.
Bulls aim next toward reclaiming key resistance levels around $95,' a milestone which would signal renewed buying strength according to relative strength index readings currently neutral-to-bullish near ~64…
Taken together these metrics imply ongoing consolidation: suppressed exchange inflows help avoid sharp sell-offs but weak ETF demand limits explosive rallies pending fresh catalysts such as imminent Federal Reserve policy announcements expected soon.
Frequently Asked Questions ❓
What caused bitcoin’s surge beyond $90,   }? A marked decline in Binance deposit volumes reaching four-year lows fueled upward momentum.
How did bitcoin behave after crossing $90, }? The cryptocurrency retreated slightly settling within an ~$89,thinspacetext{to},,$60 range amid subdued trading activity.
What role do ETFs play in bitcoin’s current trend? Sizable net outflows totaling roughly $147M occurred recently from spot bitcoin ETFs led primarily by BlackRock’s IBIT redemptions.
Which price levels are traders monitoring now?&thinspace;Certain support exists between $84,text{and},$87,text{thousand}, while surpassing $95,text{thousand} could trigger strong buying signals.