Friday’s trading session proved turbulent for Bitcoin, with the cryptocurrency briefly breaching the psychologically significant $90,000 threshold. This movement underscores the ongoing consolidation phase that has persisted since the asset’s peak in October. Despite robust underlying network metrics, investor sentiment appears increasingly cautious.
Institutional Infrastructure Holds Firm Despite ETF Outflows
A notable divergence was observed in U.S. spot Bitcoin ETF flows on December 11th. While BlackRock’s IBIT fund attracted $76.71 million in new capital, Fidelity’s FBTC experienced outflows of $103.55 million. The day concluded with net outflows totaling $77.34 million across the category. Nevertheless, the broader institutional picture remains strong, with cumulative net inflows standing at approximately $57.84 billion. In a significant policy shift, investment giant Vanguard has now enabled its brokerage clients to trade spot ETFs for Bitcoin, Ethereum, XRP, and Solana. Furthermore, BlackRock executives recently identified their Bitcoin ETF as the firm’s largest revenue generator.
Network Fundamentals Contrast with On-Chain Activity
The Bitcoin network’s computational power, or hash rate, achieved a new all-time high on December 11th, reaching 1.18 billion TH/s. This figure represents a substantial 61% increase compared to the previous year, signaling miner confidence in the network’s long-term viability despite current margin pressures.
However, data from Glassnode presents a contrasting view of market demand:
* The count of active addresses remains near cycle lows.
* The Realized Cap is growing at a muted pace of just 0.7%, indicating weak new capital inflow.
* Unrealized losses across the entire cryptocurrency market have climbed to $350 billion, with Bitcoin accounting for $85 billion of that total.
Market structure analysis reveals a concentration of supply among short-term holders, which typically amplifies price volatility. Key technical levels to watch include the True Market Mean at $81,300, viewed as a critical support, and the Short-Term Holder Cost Basis at $102,700, which represents a major resistance zone.
Should investors sell immediately? Or is it worth buying Bitcoin?
Price Action and Macroeconomic Influences
During U.S. trading hours, Bitcoin’s price declined from around $92,500 to below $89,800. This weakness was partly triggered by a sell-off in AI-related equities, notably a 10% plunge in shares of chipmaker Broadcom following a disappointing forecast. Public Bitcoin miners felt the pressure, with Hut 8 dropping over 5%, and Riot Platforms and Iris Energy each shedding roughly 4%.
The digital asset has been confined to a narrow trading range between $88,000 and $94,000 for several days. The market failed to find a clear directional catalyst even after the U.S. Federal Reserve’s anticipated 25-basis-point rate cut. Comments from Chair Jerome Powell, suggesting a potential pause in further cuts come January, weighed on risk assets broadly.
Technical Perspective and Forward Outlook
The immediate focus is whether Bitcoin can maintain its footing in the $88,000 to $90,000 support zone. A decisive break below could see the price target the $81,300 True Market Mean level, often considered a final defensive line for bulls. On the upside, initial resistance is seen near $95,000, with a far more substantial barrier expected between $100,000 and $102,700.
Market volatility expectations have eased, with the 30-day implied volatility metric falling to its lowest point since November 10th. Options traders continue to exhibit a defensive posture, maintaining a put bias across all timeframes. The upcoming interest rate decision from the Bank of Japan is viewed as a potential source of fresh market impetus, with analysts cautioning that volatility in the USD/JPY currency pair could spill over and impact liquidity in cryptocurrency markets.
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