Bitcoin faces heavy ETF outflows thin market support as the Fed meeting and inflation data set the tone for risk assets.

Small shifts in macro signals could trigger outsized Bitcoin moves.

BTC has dropped below $89,000 after failing to hold January highs. 

Last week’s $1.33B ETF outflow marked the largest weekly withdrawal in almost a year, leaving the market with less support.

At the same time, a busy U.S. macro calendar raises the chance of sharp, fast price swings.

RECOMMENDED: This Company Spent $2.13B On Bitcoin Despite The Downturn

Bitcoin ETF Outflows Weaken Short-Term Support 

Spot Bitcoin ETFs have shifted from steady inflows to aggressive selling.

The $1.33B withdrawn last week signals reduced institutional demand at current prices. 

When ETF inflows slow or reverse, Bitcoin loses a key stabilizing force.

That often leads to quicker drops when selling pressure appears.

With liquidity thinner, price moves tend to stretch further in both directions.

A modest sell order can push Bitcoin lower faster than usual, especially during U.S. trading hours. 

As long as ETF flows remain negative, rallies may struggle to hold, while downside moves can accelerate once key support levels give way.

ALSO READ: Massive $150M Bitcoin Buy Plan Could Ignite Next BTC Rally

Fed Meeting And Inflation Data Could Set The Direction For Bitcoin

The Federal Reserve’s Jan. 27–28 meeting is the main macro event of the week.

Markets expect no rate change, but Chair Powell’s comments will shape expectations for the months ahead.

Even small shifts in language around inflation or rate cuts can move the dollar and risk assets quickly.

January inflation data will also likely introduce uncertainty.

Strong numbers could lift the dollar and reduce appetite for risk, putting pressure on Bitcoin.

Softer data would ease those fears and allow prices to recover.

With ETF support weaker, Bitcoin may react more sharply than usual to these releases.

RECOMMENDED: Analysts Predicts 50% Bitcoin Surge – But Not Without Warning

Conclusion 

Bitcoin holds support in the $85,000–$88,000 range, with resistance around $95,000.

A firmer U.S. dollar or renewed ETF outflows could push prices toward $80,000.

If the dollar weakens and ETF flows stabilize, Bitcoin has room to rebound and retest the $95,000 level this week.

Should You Invest $1,000 In Bitcoin Today? 

Before you buy BTC, you’ll want to read our latest premium crypto alert where we will reveal the crypto assets you may want to consider for 2026 with explosive potential.