Bitcoin fell below $90,000 for the first time in eight weeks on January 13, reflecting a 12.5% price drop over seven days. Despite this decline, derivatives indicators suggested a neutral to bearish sentiment, with significant whale activity indicating resilience amid market fluctuations. A brief negative funding rate was noted as investors sought bearish positions, coinciding with the liquidation of leveraged long positions. Broader market sentiment soured as the S&P 500 dropped 4.1%, influenced by strong US jobs data and rising Treasury yields, signaling fears of prolonged high interest rates. Additionally, the US dollar's rise indicated a flight to safety among investors. Amid these conditions, MicroStrategy continued to purchase Bitcoin, bolstering its holdings significantly, while US-listed Bitcoin ETFs experienced notable outflows, raising questions about institutional demand. Despite recent volatility, Bitcoin has remained resilient with a 37% gain over the past 90 days, although economic uncertainties persist, potentially dampening short-term demand as investors reconsider risk.

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