Bitcoin (BTC) briefly crossed $90,000 on Wednesday and reached an intraday high of $90,336. However, its brief rebound lost momentum as the flagship cryptocurrency slipped below $87,000. Analysts have warned of a deeper downturn in 2026, with investors expecting a dip below $85,000.
Long-term holders have also trimmed their Bitcoin holdings, while geopolitical risks increase the prospects of a downturn in the new year.
Spot Bitcoin ETFs Register $450M In Inflows
Spot Bitcoin ETFs recorded their largest single-day inflow in over a month on Wednesday, registering $457 million in net inflows. Returning inflows suggest renewed institutional demand amid shifting macro expectations. The inflows take the cumulative net inflows for US spot Bitcoin ETFs to over $57 billion, with total assets under management reaching $112 billion. Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the ETF pack, recording $391 million in inflows and accounting for most of the day’s intake. BlackRock’s IBIT was a distant second with $111 million in net inflows.
The ETF recovery follows a difficult period that began in November with substantial outflows. The last time spot Bitcoin ETFs recorded over $450 million in net inflows was on November 11. According to Vincent Liu, Chief Investment Officer at Kronos Research, renewed inflows are a reflection of early macro positioning.
ETF inflows feel like early positioning. As rate expectations soften, </span></i><a href="https://coinstats.app/coins/bitcoin/"><b><i>BTC</i></b></a><i><span style="font-weight: 400;"> becomes a clean liquidity trade again. Politics sets the mood, but capital moves on macro.
However, Liu warned against volatility, stating that momentum could be uneven even if it persists.
Momentum likely holds, but expect it to be uneven. Flows will track liquidity and price action. As long as </span></i><a href="https://coinstats.app/coins/bitcoin/"><b><i>BTC</i></b></a><i><span style="font-weight: 400;"> remains a clean macro expression, ETFs stay on the path of least resistance.
6.7 Million BTC In The Red
Bitcoin (BTC) dropped to levels last seen nearly a year ago. This has left a supply cluster between $93,000 and $120,000, which is currently preventing upward momentum. This has pushed over 6.7 million BTC into the red, according to data from Glassnode. Overall demand remains muted across spot and derivatives markets. Analysts said that spot buying has become selective and short-lived, while corporate treasury flows have become episodic. Additionally, futures positioning de-risking.
Crypto ETPs Could See Major Liquidations Next Year
Bloomberg ETF analyst James Seyffart has warned that many of the 100 crypto ETPs slated to debut next year won’t survive due to a lack of demand. Seyffart stated that he agreed with Bitwise’s prediction that over 100 crypto ETPs will launch in 2026. However, he added a caveat that most will not survive beyond 2027 due to a lack of demand. The analyst accused issuers of
throwing a lot of product at the wall.
We’re going to see a lot of liquidations in crypto ETP products. Might happen at the tail end of 2026, but likely by the end of 2027. Issuers are throwing A LOT of product at the wall.
A total of 622 ETFs have closed over the past year, of which 189 were in the US. Most ETFs failed to attract inflows, leading to low assets under management. Several ETFs have been liquidated this year, with notable ones including ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY) and ARK 21Shares Active On‑Chain Bitcoin Strategy ETF (ARKC). Analysts expect a surge in ETP approvals in 2026 following the SEC’s adoption of new generic listing standards. The new standards do not require each application to be reviewed on a case-by-case basis.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is trading around $87,000 as it remains under pressure, with analysts warning of a deeper downturn in early 2026. The flagship cryptocurrency rebounded on Wednesday, briefly crossing the $90,000 mark. However, the recovery lost momentum as selling pressure at higher levels forced the price lower. Bitcoin continues to underperform compared to equity markets as traders position themselves for further downside around the December 26 options expiry.
Derivatives markets data reveal a buildup of put options around $85,000, indicating that investors expect Bitcoin to slip below that level in the near term. Alex Kuptsikevich, Chief Market Analyst at FxPro, stated,
There’s clear defensive positioning going into the year-end. The uptrend that formed in late November has been broken, and the market is now trading more as it did during the October sell-off, with sharp rebounds failing to gain traction.
CoinGlass data revealed that 24-hour liquidations rose 126% to $536 million, while open interest (OI) dropped 1.22% to $124 billion, indicating reduced leverage.
BTC’s initial move to $90,000 liquidated $120 million worth of short positions. However, analysts expected a drop below $85,000. The flagship cryptocurrency continues trading between $85,000 and $90,000. A break below or above either could set the tone for the rest of the year, with liquidity thinning as the holidays get closer. However, long-term holders have ramped up selling pressure. According to data from K33 Research, around $300 billion of previously dormant Bitcoin entered the market this year, with long-term holder selling reaching a five-year high over the past month. Wu Blockchain posted an excerpt from the report on X, shown below,
K33 Research data shows that in 2025 alone, nearly $300 billion worth of previously dormant Bitcoin re-entered circulation. CryptoQuant reports that the past 30 days have seen one of the heaviest distributions by long-term holders in more than five years. Previously, this selling pressure was largely absorbed by demand from spot Bitcoin ETFs and crypto investment firms, but with ETF flows turning negative, derivatives volumes declining, and retail participation weakening, the additional supply is now being released into a more fragile market.
The flagship cryptocurrency started the previous week in positive territory, rising 0.28% to $90,653. Buyers retained control as the price reached an intraday high of $94,640 before settling at $92,690, ultimately increasing 2.25%. However, BTC lost momentum on Wednesday, dropping 0.71% to $92,035. The price fell to an intraday low of $89,257 on Thursday as selling pressure intensified. However, it rebounded from this level to reclaim $90,000 and settle at $92,542.
Source: TradingView
The price returned to bearish territory on Friday, dropping 2.45% to $90,278. Price action remained bearish over the weekend as BTC registered a marginal drop on Saturday before falling 2.31% on Sunday and slipping below $90,000 to $88,171. Sellers retained control on Monday as the price fell 1.99% to $86,417. Despite the overwhelming selling pressure, BTC recovered on Tuesday, rising 1.66% to $87,854. The price briefly crossed $90,000 on Wednesday and settled at $90,336. However, it failed to stay at this level and settled at $86,209. BTC is up 1.01% during the ongoing session, trading around $87,077.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
