Bitcoin [BTC] prices fell below the $90,000 level, reaching $89.3,000 on January 8. At the time of writing, BTC was trading at $91,000, after a dip in response to news about Morgan Stanley’s Bitcoin ETF.
This dip resulted in $440 million in liquidations, 70% of which were long positions. The Coinbase Premium Index indicated weak buying pressure from US investors, and broader market sentiment appeared cautious despite January gains.
On-chain statistics show weak demand for Bitcoin
In one message on Xcrypto analyst Axel Adler Jr drew attention to the Bitcoin Unified Sentiment Index. For the first time since November 2025, investor sentiment has shifted from fearful to neutral.
This does not support the idea of continued optimism and buying pressure. As the recent rally to local resistance at $94.5k showed, traders and short-term holders are willing to take profits quickly.
On the other hand, there were indications of growing purchasing power in the crypto market. AMBCrypto reported that new stablecoin inflows to exchanges started the new year accompanied by weakly positive capital flows.
By using the apparent Bitcoin demand metric to measure liquidity, we can assess under which regime the current market is operating.
In August and September 2025, apparent demand fell even as prices rose $124,000, trying to break it twice. This showed that demand was slowing down.
Positive apparent demand and rising prices suggest that strong buying is pushing older coins onto the market. However, once this absorption slows down, the bull run typically loses momentum and begins to fade.
Apparent demand fell into negative territory in November.
When this measure remains below zero for more than a month, it typically signals a period of deep consolidation, such as in April 2025, or the beginning of a structural shift toward a bear market. The latter could be happening now.
Bitcoin spot ETF flows have been largely negative over the past two weeks, underscoring weak demand for the key crypto asset.
Although January started with two days of bullish inflows, the momentum quickly dissipated. With key data continuing to point to limited buying interest, traders should remain cautious about the potential for further price declines.
Final thoughts
- The Bitcoin Unified Sentiment Index saw its first shift from fearful to neutral since November.
- January started off bullish, but the rally past $94.5k faltered, and negative ETF flows this week illustrated the lack of sustained demand.