🔥 Key Takeaways
Bitcoin Stalls Below $90,000 as Holiday Liquidity Thins
As the year comes to a close, Bitcoin is struggling to break through the $90,000 barrier, trading in a narrow range of $86,500–$90,000. The holiday season has led to a decrease in liquidity, resulting in low trading activity and a spot volume of around $34 billion.
Despite the stagnant price, there have been significant movements in the market. CoinShares has recorded $446 million in weekly outflows, indicating a decrease in investor confidence. On the other hand, Farside has shown a $355 million ETF inflow, led by BlackRock’s IBIT, which could be a positive sign for the market.
However, the funding rate remains muted, suggesting that investors are cautious and not taking on excessive leverage. This could be due to the uncertainty surrounding the market, as well as the low liquidity during the holiday season.
As we head into the new year, it’s essential to keep an eye on market developments and liquidity levels. A surge in trading activity and investor confidence could be the catalyst for Bitcoin to break through the $90,000 barrier and reach new heights.
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