Haciyev Reşit 
Bitcoin (BTC) fell back to the $90,000 level and became the focus of the market despite the influence of institutional catalysts. Investors are closely monitoring sharp price fluctuations driven by rising FUD (fear, uncertainty, and doubt). Developments such as ETFs and MSCI updates—considered theoretically positive catalysts—failed to support a sustained BTC rally, leaving the price below expectations. Experts note that this pullback is not merely a healthy price reset, but also a reflection of investors’ cautious behavior and overall market sentiment. In particular, the cautious stance of short-term traders and the liquidation of long positions have played an important role in shaping price movements.
Market Moves and the New Year Rally
The “New Year rally” that began at the start of 2026 increased short-term liquidity with approximately $200 billion in inflows, creating market momentum and resulting in around $500 million in liquidations. With this strong start, Bitcoin had the opportunity to rise to around $95,000, but positive news such as MSCI approval and the launch of BTC ETFs failed to push prices higher. As a result, Bitcoin closed the day down roughly 2%, around the $90,000 level, highlighting the market’s cautious and indecisive tone.
Institutional Catalysts and Market Reaction
Morgan Stanley’s BTC ETF launch and MSCI approval were theoretically viewed as strong positive catalysts for Bitcoin’s price. However, the market treated these developments as short-term “sell-the-news” or pullback opportunities. ETF outflows and long-position liquidations triggered Bitcoin’s decline and led to a shift in investor sentiment toward fear. This suggests weakening demand, confirmed by the Coinbase Premium Index, which dropped into negative territory at -0.14, indicating limited domestic demand. Despite seemingly bullish catalysts, the market response shows that investors remain cautious and continue to prioritize position management.
Technical and Sentiment-Driven Factors
BTC’s decline cannot be viewed solely as a price correction; it also reflects investors’ cautious behavior and heightened sensitivity to potential manipulation. Technical indicators suggest that FUD has not fully dissipated and that Bitcoin may still face the risk of a deeper correction.
Despite ETF-related news and clarity around MSCI, Bitcoin failed to sustain its gains and retreated to the $90,000 level. Combined with ETF outflows, realized liquidations, and a shift in investor sentiment toward fear, this pullback indicates that price action is being shaped not just by dip buying, but by persistent FUD. The market’s cautious approach demonstrates that investors continue to manage their positions carefully despite short-term catalysts and remain prepared for potential volatility ahead.
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