The new year enthusiasm has all but vanished as Bitcoin continued its sustained downtrend, undoing most of the year-to-date gains noted in the first week.

Bitcoin is down 2.4% over 24 hours, and is trading at $89,881, according to CoinGecko data. The total crypto market capitalization, which hit $3.305 trillion yesterday, is down 2.6%.

As a result of the top crypto’s downward move, total liquidations over the past 24 hours have exceeded $477 million, according to CoinGlass data. Bulls who rode the optimism, expecting the momentum to continue, are now paying the price, as longs account for over 90% of total liquidations.

Ethereum and XRP are down 3.9% and 7.6%, respectively, while meme coins like Pepe and Bonk, which nearly doubled in the first week of 2026, are now down 6.6% and 8%.

“Bitcoin’s move below $90,000 reflects fading momentum from the early-year boost,” Illia Otychenko, Lead Analyst at CEX.IO, told Decrypt. “Fresh allocations at the start of 2026 and supportive geopolitical headlines helped initially, but they were not strong enough to sustain a rally.”

Other analysts point to a confluence of headwinds.

“Despite a strong start to 2026 and positive structural developments… Bitcoin has struggled to sustain a move above the $90,000 level—and there are several drivers behind this price movement,” Wenny Cai, COO at SynFutures, told Decrypt.

She cited broader risk-off sentiment across global markets, where investors are awaiting key macro data like U.S. jobs reports, which have kept risk appetite muted. “This risk-off behavior has been reflected in Bitcoin’s trading ranges near the low-$90Ks and occasional dips below $90K,” Cai said.

As a result, the investor sentiment remains relatively low. Users on prediction market Myriad, owned by Decrypt‘s parent company Dastan, reflected this behavior, assigning only a 24.5% chance that Bitcoin hits a new all-time high before July.

Otychenko added that the recent pullback was reinforced by renewed spot exchange-traded fund outflows, highlighting the U.S. Bitcoin ETFs’ $243 million outflow.

Cai concurred, noting that while a long-term positive, “ETF flows—while a structural positive—have recently acted as a headwind in the short term,” reducing immediate buying pressure.

“Crypto market liquidity remains thin, resulting in choppy price action,” according to Otychenko, who believes that the outlook could improve with Bitcoin bouncing following the U.S. jobs data tomorrow.

Cai highlighted the same liquidity issue, noting conditions are “thinner than that in prior bull phases,” which can exaggerate downside moves even when fundamental demand is intact.