Bitcoin’s slide below $90,000 has rattled a key market narrative: growing institutional demand. According to crypto analysts, the latest pullback reflects a sharp cooldown in ETF flows and excessive leverage rather than a deeper structural breakdown.
Bitcoin is under pressure as slowing ETF demand drags on sentiment
$800 million in forced BTC liquidations highlights excessive leverage
Bitcoin is likely to stabilize in the $89,000–$95,000 range
With Bitcoin dipping under the $90,000 level, markets have entered a state of panic. A wave of futures liquidations, worsening exchange-traded fund (ETF) outflows, and fading expectations of large corporate buyers have all contributed to the downward pressure.
These developments pushed the crypto fear and greed index to extreme fear, sitting at 11 points. Still, analysts note that the correction is not necessarily the start of a broader structural downturn. Instead, the market appears to be recalibrating after an overheated first half of the year.
Excessive leverage triggers heavy liquidations
According to Jamie Elkaleh, Chief Marketing Officer at Bitget Wallet, the recent $800 million in forced BTC liquidations highlights the extent of leverage in the system.
“Elkaleh noted that while risk-off sentiment is weighing on global markets, crypto tends to express stress more violently and more transparently compared to equities.”
ETF outflows signal cooling institutional demand
Analysts from the Bitcoin yield protocol TeraHash stress that ETF flows remain one of the clearest gauges of Bitcoin’s demand profile. They point to the record $523 million outflow from BlackRock’s spot Bitcoin ETF as a sign that institutional appetite has cooled.
“At the peak of inflows in late Q2, spot Bitcoin ETFs were drawing around $600–$700 million daily. This helped BTC break above $115,000 and eventually set an all-time high above $126,000,” TeraHash analysts explained. “ETF flows are a direct reflection of demand.”
BTC outlook: Stabilization expected at $89,000–$95,000
Due to a combination of excessive leverage, profit-taking by large holders, and reduced expectations for corporate accumulation, analysts expect Bitcoin to stabilize within the $89,000–$95,000 range in the near term.
Market sentiment may remain fragile, but analysts emphasize that the current move is a cooling phase – not a collapse in the broader cycle.
