Bitcoin ETFs Defend the $90,000 Price Level Against All Odds

Wall Street's crypto custodians just pulled off the ultimate HODL.

### The Institutional Floor

Forget retail sentiment—the real battle for Bitcoin's price is being waged in the prospectuses of exchange-traded funds. These financial vehicles, once the domain of staid stock pickers, have become the market's shock absorbers. When volatility hits, their structured inflows create a buying pressure that traditional crypto markets never engineered. It's price discovery by spreadsheet.

### $90,000: The New Line in the Sand

The number isn't arbitrary. It represents a psychological threshold where institutional capital decided 'enough.' Analysis of order book data—when you can find it between the dark pool trades—shows consistent bid walls materializing whenever the price dips toward that level. The mechanism is simple: authorized participants create shares, issuers buy the underlying asset, and a self-reinforcing loop defends the territory. A cynic might call it the most expensive game of 'keep away' in financial history—fund managers collecting fees while pretending to discover a free market price.

### Against All Odds? Try Against All Shorts

Market narratives love an underdog story, but this defense wasn't magic. It was liquidity. While social media debated 'macro headwinds' and 'regulatory overhang,' the tape told a different story: sustained net inflows into the major ETF products. That capital acts like a circuit breaker, automatically deploying when pessimism peaks. The old crypto maxim 'buy when there's blood in the streets' got a corporate makeover—now it's 'rebalance the institutional portfolio according to the mandated allocation framework.' Less romantic, just as effective.

The takeaway? Bitcoin's price action is no longer a referendum on crypto ideology. It's a function of asset allocation models in Connecticut and Zurich. The $90,000 defense proves the infrastructure works, even if it turns the anarchic dream of peer-to-peer electronic cash into just another line item for a pension fund advisor—who probably still doesn't understand the blockchain, but sure understands basis points.

In the United States, Bitcoin$90,755 ETFs keep accumulating assets even as prices hover around the $90,000 range. According to Glassnode data, the cumulative cost basis of ETFs has formed a significant support level in the market since last year. Notably, two major corrections since 2024, occurring from March to August 2024 and January to April 2025, hit bottom at this cost base before rebounding. Despite net weekly ETF inflows turning negative during both periods, the price floor remained intact.

ETF Buying Pressure Climbs Back to Critical Levels

Currently, the market is witnessing a similar pattern. Bitcoin has declined by 28% from its peak of $126,000 in October, nearing the ETF cost band of $83,000. Since the beginning of December, net outflows from ETFs have been observed. The price has decreased by 1.3% in the last 24 hours, settling around $90,000. It has shown significant recovery from the trough of $84,600 tested on December 2.

Meanwhile, U.S. ETF products currently hold bitcoin worth $117.6 billion, accounting for approximately 6.55% of the total supply. This structural demand indicates that the price might find support again near $83,000.

Fed’s Rate Decision to Play a Decisive Role in Crypto Markets

All eyes are on the upcoming FOMC meeting scheduled for Wednesday. CME FedWatch data suggest that a quarter-point interest rate cut is almost certain. The critical question, however, is whether this cut represents a SAFE easing step related to inflation or a political mistake given that service inflation remains above target.

Additionally, Mark Pilipczuk, CMO of Kraken’s subsidiary CF Benchmarks, notes that markets are pricing in only a single rate cut, with the next MOVE not expected until before June. However, he emphasizes that hinting at an earlier cut could create positive momentum for Bitcoin.

Shivam Thakral, CEO of BuyUCoin, highlights that Bitcoin is situated within a strong on-chain and ETF support zone, with historical risk-reward dynamics indicating an upward trend. Thakral expresses that a sustainable recovery requires renewed acceleration in ETF inflows and macro stability, though a hawkish Fed stance could weaken recovery expectations.

Market Observations: Ethereum and Solana’s New Moves

Beyond Bitcoin, significant developments are occurring in the global market. Last week, substantial wallet movements on the Ethereum$3,139 network triggered a resurgence of staking activities. Simultaneously, the Solana$133 ecosystem recorded a notable rise in developer activity with the launch of new GameFi projects. These developments demonstrate that investors are still seeking opportunities in altcoins despite the market correction.

Meanwhile, the broader market displays a sideways trend over the last 24 hours. Ethereum has declined by 0.8%, while Solana has risen by 1.2%. On the other hand, XRP has shown a sideways pattern, while Avalanche has fallen by over 2%. In the world of meme tokens, small fluctuations emerge with low volumes, reflecting a continued search for direction in the market.