Bitcoin’s value lingered just under the $90,000 mark, hovering near $80,000 today as investors attempted a late-year recovery from losses amid sparse holiday market activity. However, the momentum necessary for a decisive breakout remained absent.
At the time of reporting, Bitcoin was priced at approximately $88,063—reflecting a modest 1% increase over the last 24 hours based on current market statistics. Trading volumes were subdued at around $40 billion as December nears its end.
The cryptocurrency’s price is roughly 1% below its highest point in seven days ($89,201) and about 1% above its lowest point during that same period ($86,855).
As the largest digital currency globally by market cap and supply metrics, Bitcoin has nearly reached its maximum limit with circulating coins totaling 19,969,296 BTC out of an absolute cap of 21 million. Its total market capitalization stands near $1.76 trillion—a slight increase of about 1% compared to yesterday.
Yesterday marked Bitcoin’s second consecutive attempt to break through the $90K barrier before gains stalled once more. Price fluctuations continue within a broad range between roughly $85K and $95K—a pattern established following October’s sharp decline.
This downturn came after Bitcoin hit an all-time high earlier in October when it had surged nearly 30% year-to-date.
Since then sentiment has cooled considerably; currently Bitcoin trades approximately 5% lower than last December’s levels—poised for what could be its first annual loss in three years.
“Expect exaggerated price swings on low trading volume throughout New Year’s,” noted Jasper De Maere from Wintermute in correspondence with Bloomberg. He advised caution against over-reliance on short-term indicators until liquidity normalizes post-holiday season.
This recent stagnation contrasts sharply with broader rebounds seen across traditional risk assets earlier this year when optimism surrounding crypto-friendly policies initially propelled prices upward under President Trump’s administration before uncertainty regarding tariff strategies unsettled markets worldwide.
Bitcoin Faces Challenges Amid Leveraged Trading Pressure
While U.S stock markets have largely recovered from those shocks quickly enough to regain footing; Bitcoin continues struggling to maintain upward momentum following October’s sell-off compounded by extensive liquidations triggered by record-high leveraged positions. On October tenth specifically there was significant unwinding of long bets resetting overall positioning dynamics within crypto markets.
The appetite for spot bitcoin ETFs also weakened substantially during Q4 according to Bloomberg data which reports outflows totaling close to six billion dollars—adding consistent downward pressure preventing reclaiming levels above ninety thousand dollars again recently.
Thin liquidity conditions typical during holidays have further skewed price movements: earlier this week bitcoin experienced volatile swings around ninety thousand dollars amidst low-volume sessions producing rapid but unsustained gains followed equally fast by losses.
Prices briefly rallied roughly two-point-six percent despite light trading activity maintaining support above eighty-six thousand throughout much of last week but failed yet again crossing or holding firm beyond ninety-thousand-dollar thresholds especially during Asian trading hours.
QCP Capital attributed these moves primarily due to diminished participation citing derivative contract activity plunging almost fifty percent after record options expiry event last Friday signaling many traders stepping aside temporarily.
That options expiration also shifted short-term dynamics: dealers previously positioned long gamma now find themselves short gamma upside-wise meaning rising prices may trigger hedging actions that exaggerate brief moves particularly when liquidity remains scarce.
A similar scenario unfolded earlier this month as bitcoin approached ninety-thousand briefly where funding rates soared rapidly reflecting crowded bullish bets causing transient upward pressure.
&amp;amp;amp;amp;amp;eacute;&;Deribit&s perpetual funding rate jumped past thirty percent post-expiry rising sharply from near zero beforehand indicating overheated positioning increasing costs associated with holding long exposure positions directly impacting trader behavior&. &'s's's's<s
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Bitcoin's value hovered just below $90,000, lingering close to $80,000 today as investors made one final effort toward recovering year-end losses amid thin holiday trading.
However, a strong breakout lacked sufficient conviction.
The current price stood at approximately $88,063 at writing time, a modest gain of about one percent over twenty-four hours according to latest market data.
Trading volume remained muted around $40 billion reflecting reduced participation heading into December’s close.
The cryptocurrency trades roughly one percent below its seven-day peak at $
89,
201 and slightly above seven-day lows near $
86,
855.
As world’s leading digital asset,
Bitcoin has nearly reached circulation limits,
with
19,
969,
296 BTC issued against fixed maximum supply capped at
21 million coins.
Its total market capitalization is estimated around $1
.
76 trillion, a rise approximating one percent compared day-over-day changes.
Toward yesterday afternoon BTC attempted breaking through $90$k level twice consecutively before rally stalled once more – staying confined inside wide band ranging between $85$k–$95$k since steep selloff occurred back in October.
This drop followed all-time highs recorded early that month where prices rose almost thirty per cent YTD.
Sentiment shifted afterward leading BTC down five per cent versus previous December levels putting it poised for first yearly loss within three years span.
Jasper De Maere (Wintermute strategist) warned traders expecting amplified volatility caused mainly due low flows expected until new year ends urging caution relying heavily upon short term signals prior normalization occurs.
This slowdown contrasts broader recoveries seen among conventional risk assets initiated strong start fueled optimism linked cryptofriendly policies implemented early Trump administration phase though faded gradually given uncertainties tied tariff plans rattling global exchanges .
Challenges Facing BitCoin Amidst Leveraged Traders
Despite US equities rebounding swiftly restoring stability ,BTC struggles regaining traction since mid-October downturn intensified liquidations driven record leverage usage ; notable event took place Oct10th wiping out majority longs recalibrating overall stance .
Demand dipped noticeably towards spot ETF products – Bloomberg Q4 data shows approximate withdrawals amounting six billion USD exert steady bearish influence hindering breach beyond threshold mark .
Thin holiday session distortions further exaggerated erratic fluctuations witnessed early week swinging wildly nearby 90000 mostly unconfirmed spikes without follow-through .
Price temporarily gained +2 .6 % supported 86000 zone weekly but repeatedly failed sustain breaks exceeding 90000 especially Asia session timings .
According QCP Capital analysis recent patterns mirror scarcity participation highlighting derivatives open interest slashed ~50 % post-record option expiry signaling retreat sidelines players temporarily halting active involvement .
Option expiration altered immediate mechanics flipping dealer gamma exposure leaving them vulnerable upside forcing hedging amplifying swift directional shifts exacerbated thin liquidity conditions prevailing present times ; similar setup observed prior months spike toward $90000 triggered surge funding rates indicative overcrowded bullish bets creating ephemeral pressures upwards respectively .
Deribit perpetual swap rate shot beyond +30 % marking sharp jump relative neutral pre-expiry state implying overheated setups hiking cost maintaining longs affecting trader choices decisively .
Technical insights offered via analysts @Bitcoin Magazine reveal ongoing rejection lower bounds inside expanding wedge formations hint weakening downside force resistance located approx $91400 & $94000 weekly closure surpassing latter could unlock paths targeting $101000-$108000 albeit facing substantial hurdles ahead.
Support crucially rests near $84000 breach risking declines pushing values into range between $7200068000 territory .
This article titled "BitCoin Price Struggles Around &dollar88 ,000 Amid Sparse Holiday Trading Stalling Year-End Rally" originally appeared on BitCoin Magazine authored by Micah Zimmerman."
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