NEW YORK, Jan 23, 2026, 17:13 EST — After-hours
Bitcoin hovered just under $90,000 on Friday, settling after a volatile week that had traders zeroing in on ETF flows and funding rates. The cryptocurrency last ticked up roughly 0.3% to $89,537, swinging between $88,598 and $91,002 during the session. Ether remained mostly flat around $2,952.
This shift is significant because much of the marginal demand has flowed through U.S.-listed spot bitcoin ETFs and the related hedged trades. When that capital pulls back, bitcoin usually reacts sharply—even if no major news hits the wires.
Investors withdrew funds from U.S. spot bitcoin ETFs once more on Thursday, continuing a streak of outflows that started with a sharper drop earlier this week. Bitwise Chief Investment Officer Matt Hougan suggested the redemptions indicate “a sign that hedge funds are pulling back on the basis trade,” an arbitrage strategy targeting the price difference between spot bitcoin and futures. 1
The gap has tightened significantly. One-month annualized yields on the cash-and-carry trade now sit near 5%, according to Amberdata, while the bitcoin futures basis has plunged to about 4.7% from roughly 17% a year ago, said Greg Magadini, Amberdata’s director of derivatives. James Harris, CEO of digital asset manager Tesseract, described it as a “tactical reset,” driven by subdued yields and thinner liquidity. 2
Macroeconomic headwinds remain a challenge. On Friday, the Bank of Japan left its policy rate steady at 0.75% while upgrading its growth and inflation outlooks. Investors are now watching closely to gauge how much further tightening may come amid shifting global bond yields. 3
Risk appetite shifted alongside geopolitics and major policy chatter. Stocks rose and the dollar eased after U.S. President Donald Trump stepped back from previous threats involving Greenland and tariffs on Europe. That change in tone rippled through markets, crypto included. 4
Coinbase shares slipped roughly 2.8% in late U.S. trading, whereas Strategy shares gained close to 1.3%.
Product activity around the “hard asset” theme showed no signs of slowing. Bitwise and Proficio Capital Partners rolled out an ETF combining gold, bitcoin, and other metals, targeting investors seeking alternatives to fiat currencies. “I believe you have to view these as representing their own asset class,” said Proficio CIO Bob Haber. 5
The downside is straightforward: if redemptions continue and the basis remains tight, fast money could keep pulling out, pushing more sales into a market that can swiftly become illiquid ahead of weekends. A fresh spike in yields would only add pressure.
Traders are eyeing the U.S. Federal Reserve’s next policy meeting on Jan. 27-28, searching for any hints of a rate outlook change that might ease funding conditions and spark a comeback in risk appetite. 6
