bitcoin declines amid etf outflows

Most major cryptocurrencies slipped lower this week as Bitcoin tumbled below the psychological $90,000 level, settling around $87,000. The leading digital asset reached a high of $87,465 with $52 billion in 24-hour volume, but couldn’t maintain momentum during the post-Christmas slump. It’s been a frustrating month for Bitcoin bulls watching the price repeatedly fail to crack $90,000.

Bitcoin bulls left frustrated as price slips below $90,000, settling at $87,000 after failing to maintain post-Christmas momentum.

The holiday trading period proved challenging. Thin liquidity led to sharp price moves on minimal volume – classic end-of-year crypto drama. The broader market followed Bitcoin’s lead downward, with daily losses typically ranging between 2-3 percent. Not exactly a bloodbath, but certainly not the year-end rally enthusiasts had hoped for.

Technical analysts point to critical support at $84,000, with resistance firmly established at $91,400 and $94,000. The broadening wedge pattern shows weakening downside pressure, which sounds fancy but basically means the selling might be running out of steam. A weekly close above $94,000 would target the $101,000-$108,000 range. Dream on, right? Many traders remain curious whether Bitcoin will reach the $150k milestone in the coming months, despite the current downtrend.

Bitcoin’s market capitalization currently hovers around $1.75 trillion with a circulating supply approaching 20 million coins. It’s down a whopping 30% from October highs, ending 2025 with a whimper rather than a bang. The steady drawdown accelerated in December, disappointing those who predicted a Santa rally.

Meanwhile, gold strengthened on rate cut expectations, with silver showing even more volatility – outperforming in rallies but falling harder in downturns. Both metals surged to record highs while Bitcoin underperformed. Despite this temporary setback, Bitcoin’s long-term upward trend continues to signify strong growth potential compared to alternative investments. The weaker dollar helped precious metals but didn’t do much for crypto.

Looking ahead, Grayscale predicts new all-time highs in the first half of 2026, dubbing it the “dawn of the institutional era.” Bulls remain focused on breaking $94,000 to regain momentum. Recent market analysis shows open interest dropped nearly 50% following last Friday’s record options expiry. For now though, Bitcoin seems content to hover near $87,000, waiting for holiday traders to return with fresh resolve – or resignation.

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