Bitcoin Near $89,900 Amid ETF Cost-Basis Support and Market Uncertainty
Bitcoin is trading near $89,900 after dipping 1.5% on the day and is down 28% from its October peak of $126,000, approaching the ETF cost-basis level around $83,000. U.S. spot Bitcoin ETFs currently hold $117.67 billion, equivalent to about 6.55% of the cryptocurrency’s total supply, creating a structural bid near the $83,000 level. Historically, this ETF cost basis has capped deeper pullbacks since February last year, with previous corrections of over 30% bottoming near this level.
Weekly ETF net inflows have been negative since the start of December, indicating weaker ETF-driven demand in the near term. Analysts say that a renewed ETF inflow coupled with macroeconomic stability in the next one to two weeks is necessary to establish a market floor and support a rebound.
Investors are closely watching the Federal Reserve’s upcoming Wednesday meeting. A 0.25 percentage-point rate cut is largely priced in, with potential for another cut before June if labor markets soften and inflation expectations remain near 2–3%. Mark Pilipczuk of CF Benchmarks notes that while a rate cut is priced in, there is room for upside if the Fed signals another cut before June; however, hawkish guidance could limit upside momentum.
BuyUCoin CEO Shivam Thakral emphasizes that any rebound will depend on renewed ETF inflows as well as broader macroeconomic stability, considering the ETF and on-chain support cluster.
