Bitcoin and Ethereum faced selling pressure as traders adopted a cautious stance ahead of key US economic data releases and Supreme Court decisions on global tariffs. The leading cryptocurrency declined to $90,915 while Ethereum dropped to $3,150 during Thursday trading sessions.

Market Performance Overview

The cryptocurrency market experienced broad-based declines across major digital assets during the 24-hour trading period:

Among major altcoins, XRP, BNB, Solana, Dogecoin, Cardano, and Hyperliquid declined up to 4.00% during the same period. Tron emerged as the notable exception, posting gains of 1.12% against the broader market trend.

Technical Analysis and Market Structure

Riya Sehgal, Research Analyst at Delta Exchange, highlighted key technical levels for both leading cryptocurrencies. Bitcoin remains positioned below its 20 EMA near $92,000.00 and is currently testing support at the $90,000.00 level. Ethereum is trading below its 20 EMA at $3,187.00, with crucial support identified at $3,080.00. Both assets require reclaiming short-term resistance levels to resume upward momentum according to technical indicators.

The global cryptocurrency market capitalisation declined 1.90% to $3.12 trillion according to CoinMarketCap data, reflecting the widespread selling pressure across digital asset markets.

ETF Flows and Market Dynamics

Akshat Siddhant, Lead Quant Analyst at Mudrex, provided insights into Bitcoin ETF activity and market structure. Bitcoin ETFs experienced recent inflows of $1.20 billion before recording modest outflows of $243.00 million, indicating underlying demand remains intact despite short-term volatility.

Key market metrics demonstrate continued institutional and long-term investor interest:

The exchange supply dropping to nearly 13.70% represents one of the lowest levels recorded since 2018, suggesting reduced selling pressure from exchange-held Bitcoin.

Weekly Performance Context

Despite the recent 24-hour declines, both Bitcoin and Ethereum maintained positive weekly performance. Bitcoin gained 3.98% over the past week while Ethereum advanced 6.07% during the same period. Major altcoins including XRP, BNB, Solana, Tron, Dogecoin, Cardano, and Hyperliquid posted gains up to 25.00% during the weekly timeframe.

Analyst Perspectives

Market analysts provided varied perspectives on current price action and near-term outlook. The CoinSwitch Markets Desk noted that Bitcoin attempted to breach the $94,000.00 mark but pulled back into the $91,000.00 to $92,000.00 trading zone. The market witnessed profit-taking activities alongside long liquidations, highlighting elevated leverage across trading positions.

Vikram Subburaj, CEO of Giottus, observed that Bitcoin reclaimed the psychologically significant $90,000.00 level but encountered resistance around the $94,000.00 to $95,000.00 range. Market data indicate consolidation patterns rather than trend reversal, with major support levels identified near $88,000.00 to $90,000.00 and resistance clusters at $94,000.00 to $95,000.00.

Nischal Shetty, Founder of WazirX, characterised the past 24 hours as a consolidation phase, with price action influenced primarily by short-term positioning and market structure rather than fresh macroeconomic catalysts. Elevated geopolitical uncertainty has moderated risk appetite across global asset classes, leading to range-bound trading in cryptocurrency markets.

Bitcoin has reclaimed the $90,000 level this week, but the foundations beneath the rally remain fragile as traders maintain defensive positioning. While the cryptocurrency showed technical strength by breaking above key resistance levels, derivatives markets reveal limited sustained optimism among institutional and retail participants.

Cautious Market Structure Despite Price Recovery

Despite Bitcoin's recent rebound, there have been few meaningful signs of sustained optimism across crypto derivatives markets. The broader market structure has yet to follow the price recovery, with most trading activity concentrated in short-term contracts rather than longer-dated positions that typically indicate institutional confidence.

Vetle Lunde, head of research at K33 Research, noted that "while morale is showing signs of improvement, sentiment remains largely cautious and hands-off, despite the recent uptrend." Both Bitcoin perpetual and dated futures show most bets still clustered in short-term contracts, with demand for longer-dated futures remaining muted on the Chicago Mercantile Exchange.

ETF Inflows Provide Bright Spot

The persistent Bitcoin selling seen in the final weeks of 2024 reversed in the first few trading days of this year, providing some support for prices. Fresh inflows returned to Bitcoin exchange-traded funds, with January 5 marking the strongest single-day net inflow since October 7.

Funding rates for perpetual contracts, another key gauge of risk appetite, have remained subdued, indicating limited bullish positioning according to K33 Research analysis.

Institutional Interest Remains Limited

The Chicago Mercantile Exchange, long viewed as a barometer for institutional interest, continues to show muted demand for longer-dated Bitcoin futures. This suggests that while retail interest may be returning, institutional participants remain cautious about making longer-term commitments to cryptocurrency exposure.

Further gains in Bitcoin could potentially spur activity in CME futures contracts, as the basis trade seeking to profit from the difference between spot prices and futures becomes attractive again. However, current positioning suggests traders are waiting for more definitive signals before increasing exposure.

Performance Questions Persist

Bitcoin's relative stagnation compared with gold and equities has continued to fuel questions about the value of cryptocurrency as an asset class. Bloomberg Intelligence Senior Commodity Strategist Mike McGlone observed that "declining Bitcoin volatility, particularly versus gold and beta, suggests the best performance days for cryptoassets are past us."

For now, Bitcoin's price uptick appears more like a reprieve than a resurgence, with the cryptocurrency needing to demonstrate more sustained momentum to convince skeptical traders and institutional investors of its continued relevance in portfolios.