Bitcoin [BTC] prices dipped below the $90k level to reach $89.3k on the 8th of January. At press time, BTC was trading at $91k after dipping in response to news about Morgan Stanley’s Bitcoin ETF.
This dip saw $440 million in liquidations, with 70% of them being long positions. The Coinbase Premium Index signaled weak buying pressure from U.S.-based investors, and the wider market sentiment appeared to be cautious despite the gains in January.
On-chain metrics show weak demand for Bitcoin
In a post on X, crypto 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 sustained optimism and buying pressure. As the recent rally to the $94.5k local resistance showed, traders and short-term holders are willing to take profits quickly.
On the other hand, there was evidence for growing buying power in the crypto market. AMBCrypto reported that fresh stablecoin inflows to exchanges began the new year, accompanied by weakly positive capital flows.
Using the apparent Bitcoin demand metric to gauge liquidity, we can assess what regime the current market is operating under.
In August and September 2025, the apparent demand was falling even as prices rallied $124k, attempting to breach it twice. This showed that demand had been slowing down.
Positive apparent demand and rising prices suggest that strong buying is absorbing older coins entering the market. However, once this absorption slows, the bull run typically loses momentum and begins to fade.
Apparent demand dropped into negative territory in November.
When this metric remains below zero for more than a month, it usually signals either a period of deep consolidation, like in April 2025, or the start of a structural shift toward a bear market. The latter could be underway now.
Bitcoin spot ETF flows have been mostly negative over the past two weeks, underscoring weak demand for the leading crypto asset.
Although January began with two days of bullish inflows, the momentum quickly faded. With key metrics continuing to signal 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 bullishly, but the rally beyond $94.5k faltered, and negative ETF flows this week illustrated the lack of sustained demand.
