Bitcoin Hovers at $87,000 in Mild Recovery

Bitcoin hovered around $87,000 on Tuesday, attempting a mild recovery after a sharp weekly decline of about 5 percent, as investors navigated a mix of subdued demand and emerging bullish signals in a volatile cryptocurrency market.

The cryptocurrency, which fell as low as $80,750 last week, has shed roughly 20 percent over the past month amid broader risk-off sentiment in global financial markets. Trading volume remained steady but cautious, with Bitcoin holding above key support levels near $86,800 while struggling to breach resistance at $89,800. This range-bound action reflects a consolidation phase rather than a decisive trend shift, according to market analysts monitoring on-chain data.

Several factors contributed to the recent pressure on Bitcoin. Outflows from spot Bitcoin exchange-traded funds reached hundreds of millions of dollars in recent days, pulling down prices as institutional and retail investors reduced exposure. Every $1 billion in ETF outflows correlates with a roughly 3.4 percent drop in Bitcoin's price, per estimates from financial research firms. Additionally, reduced liquidity, the unwinding of leveraged long positions, and selling by miners have...