Bitcoin’s recent upward momentum stalled on Wednesday after the cryptocurrency encountered strong resistance near the $94,000 level, amid rising exchange-traded fund (ETF) outflows and widespread profit-taking by institutional investors.
The total cryptocurrency market capitalization declined by approximately 2% over the past 24 hours, while trading activity picked up sharply. Market-wide trading volume surged by about 24% to $56.18 billion, according to data from major cryptocurrency exchanges, even as Bitcoin’s dominance moderated.
Bitcoin fell 1.75% over the past day to trade around $92,100, underperforming the broader digital asset market. Analysts noted that the flagship cryptocurrency failed to break through the $94,000 resistance zone, identifying $91,200 as a key technical support level to watch.
Market analysts said the pullback follows a strong 3.55% weekly gain and aligns with a combination of technical resistance and institutional profit-taking. After weeks of upward momentum, large investors appeared to lock in gains as prices approached critical resistance levels.
The decline reflects a convergence of factors, including heightened institutional caution, substantial ETF outflows, capital rotation by large holders, and technical selling pressure. These dynamics combined to weigh heavily on Bitcoin’s short-term price performance.
U.S.-listed spot Bitcoin ETFs recorded net outflows of $243 million on January 6, reversing a streak of record inflows earlier in the year. Fidelity’s FBTC led the outflows with redemptions totaling $312 million, while BlackRock’s IBIT stood out as the only major fund to post inflows, attracting $229 million.
Analysts said the reversal underscores waning institutional momentum following an explosive start to 2026. Given that ETF inflows had been a major driver of recent price gains, the shift to outflows reduced buy-side liquidity and amplified bearish sentiment in the market.
Blockchain data also revealed notable activity from large traders. A prominent whale on the Hyperliquid platform reportedly closed a Bitcoin long position with profits of $87,500 before opening a highly leveraged 25x position in Ethereum, while maintaining exposure to the meme token PEPE.
This behavior highlights a broader rotation of capital from Bitcoin into alternative cryptocurrencies following BTC’s recent rally. Analysts cautioned that high-leverage trades by large players often increase market fragility, contributing to cascading liquidations. During the same period, total liquidations across the crypto market reached approximately $428 million.
Despite near-term volatility, some institutional investors continue to accumulate Bitcoin during price dips, reinforcing confidence in its long-term store-of-value narrative. Analysts noted that potential regulatory easing around banking integration could further support Bitcoin’s role within traditional financial systems, even as short-term price swings persist.
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