Bitcoin Retreats After Briefly Surpassing $100,000

After a strong start to 2025, Bitcoin has slipped back below the $100,000 mark, trading at $92,741 on Thursday. This comes as investors pulled a net $583 million from U.S. Bitcoin ETFs on Wednesday, marking the second-largest outflow since their debut.

Factors Behind Bitcoin’s Decline

Several factors have contributed to Bitcoin’s recent downturn:

• ETF Outflows: Investor sentiment has shifted, with the large withdrawals signaling caution in the market.
• Economic Data: Strong U.S. economic reports have tempered expectations for imminent Federal Reserve rate cuts, pressuring risk assets like Bitcoin.
• Volatility Concerns: Put options demand has increased, reflecting trader anticipation of potential corrections.

ETF Performance and Trump’s Influence

Bitcoin ETFs surged in popularity throughout 2024, buoyed by strong inflows and President-elect Donald Trump’s vocal support for the digital-assets industry. These factors helped Bitcoin reach an all-time high of $108,315 in December. However, the rally has struggled to maintain momentum into the new year.

Market Sentiment and Trading Trends

Nick Forster, founder of Derive.xyz, highlighted the growing demand for downside protection through put options, signaling traders’ concerns over volatility. “The market is bracing for heightened fluctuations,” Forster noted, adding that Bitcoin’s recent performance reflects increased caution among investors.

Bitcoin’s Current Position

As of Thursday morning in London, Bitcoin was trading at $93,529, down sharply from its peak earlier this week. This 14% drop from its December high suggests a temporary pause in the cryptocurrency’s rally, leaving traders and investors closely watching for the next moves in economic policy and market trends.