Analysis: The main reasons for the current Bitcoin price drop are the weakening of the early-year rally momentum, increased safe-haven sentiment ahead of the U.S. employment data release, and outflows from ETFs.

BlockBeats News, January 8th, according to Decrypt's report, as Bitcoin continues to fall, the New Year's optimism has almost dissipated, and most of the gains recorded in the first week have been retraced. According to CoinGecko data, Bitcoin has fallen by 2.4% in the past 24 hours, now trading at $89,881. The total liquidations in the past 24 hours have exceeded $477 million.

The Chief Analyst of an exchange, Illia Otychenko, stated: "Bitcoin breaking below $90,000 reflects a weakening momentum in the New Year market. The initial capital inflow in early 2026 and mildly bullish geopolitical news initially provided support, but the momentum was not sufficient to sustain a continuous rebound."

SynFutures' COO, Wenny Cai, said: "Despite a strong start in 2026 and persistent structural positives, Bitcoin has always struggled to effectively hold above $90,000, with multiple factors at play behind this. She pointed out that the global market is showing an increase in risk aversion sentiment, with investors waiting for key macroeconomic indicators, including U.S. employment data, thus suppressing risk appetite. This risk-averse behavior is reflected in Bitcoin mainly oscillating in the upper $90,000 range and occasionally dropping below $90,000."

Otychenko also mentioned that spot Bitcoin ETFs once again saw outflows, further reinforcing the recent pullback trend, with the U.S. Bitcoin spot ETF seeing a single-day net outflow of $243 million.