The cryptocurrency market is concluding the week on a strong note, with Bitcoin (BTC) managing to hold the $90,000 level despite facing a significant four-day streak of outflows from U.S. spot Bitcoin ETFs. According to data from Soso Value, these outflows totaled a record $1.68 billion for the week, marking the largest weekly decline in the past two months since November 2025.
Market sentiment was initially rattled by two key macro factors: Japan's bond crisis, which raised fears of contagion to U.S. markets, and escalating tensions between the E.U. and the U.S. over Greenland. However, by press time, these risks had largely neutralized. The E.U.-U.S. tensions eased over a potential Greenland deal, and the Bank of Japan paused its rate hikes after its policy decision on January 22. This shift in sentiment prompted a relief rally in Asian markets and helped Bitcoin stabilize near $90,000.
Despite the outflows, analysis suggests Bitcoin may be forming a local bottom. Data from Farside Investors shows the pace of outflows slowed dramatically to just $32 million on January 22. Historical patterns indicate that heavy ETF outflows have often coincided with price lows, as seen in November 2025 when a similar $1.22 billion outflow preceded a rebound from $80,000 to above $90,000. Glassnode data shows the average cost basis for ETF investors is $84,099, a key historical support level.
In other news, BitGo, a major crypto custody and infrastructure firm, went public in a volatile IPO. Its stock (NYSE: BITGO) opened at $22, hit an intraday high of $24.5, but closed at $18.49, raising $212 million and achieving a valuation above $2 billion. This move is part of a broader 'crypto IPO mania,' with firms like Anchorage Digital, Kraken, and Bitpanda also planning public listings.
On the technology front, the Ethereum-based privacy protocol Railgun unveiled 'Railgun_connect,' a new 'plug and play' DeFi integration tool. This feature allows users to interact with on-chain platforms for staking, swaps, and lending directly from their private, shielded wallets. The team successfully tested it on CowSwap on Polygon POS and plans a wider rollout, aiming to disrupt the privacy landscape currently dominated by platforms like Zcash (ZEC), which lack scalable DeFi functionality.
The market's focus now shifts to the upcoming U.S. Federal Reserve interest rate decision scheduled for January 28. According to the CME FedWatch Tool, markets are pricing in a rate pause, but the outcome remains uncertain amidst the noted Trump-Powell conflict.
