Bitcoin Struggles Below 90,000 Amid Record Options Expiry and ETF Outflows( Bitcoin struggles below 90000)
Bitcoin remained under pressure as it traded below the key 90,000 level, struggling to gain strong upward momentum. The world’s largest cryptocurrency hovered around 88,650, up nearly 1.7 percent, but failed to break above the psychological barrier that many traders are watching closely.
The market faced added stress from a record breaking options expiry worth 23.6 billion dollars on December 26. At the same time, spot Bitcoin exchange traded funds recorded their fifth straight day of outflows, signaling reduced institutional demand during a thin holiday trading period.
Together, these forces have kept Bitcoin range bound while raising concerns about short term volatility once derivatives contracts roll off.
Bitcoin Price Holds Steady but Lacks Breakout Strength
Bitcoin showed modest gains during the session but remained stuck below the 90,000 mark. This level has become a strong resistance point as traders hesitate to push prices higher amid mixed market signals.
Despite the small rebound, buying pressure remains weak. Many investors appear cautious as they wait for clarity following the options expiry and further data on ETF flows.
Market analysts say the inability to reclaim 90,000 suggests hesitation rather than outright bearishness.
Record Options Expiry Creates Market Compression
Bitcoin struggles below 90000.
One of the biggest factors affecting Bitcoin this week is the massive options expiry scheduled for December 26. Contracts worth approximately 23.6 billion dollars are set to expire, making it one of the largest expiries in Bitcoin history.
Large options expiries often cause price compression as traders hedge positions and avoid taking large directional bets.
Why Options Expiry Matters
Options contracts give traders the right to buy or sell Bitcoin at a certain price. As expiry approaches, market makers adjust positions, which can reduce price movement.
Once these contracts expire, volatility often returns as hedging pressure fades.
Analysts warn that sharp price swings are possible after the expiry, especially during periods of low liquidity.
Spot Bitcoin ETF Outflows Weigh on Institutional Demand
Bitcoin also faced pressure from continued outflows from spot Bitcoin exchange traded funds. On December 25 alone, ETFs saw outflows of roughly 175 million dollars, marking the fifth consecutive day of net withdrawals.
ETF flows are closely watched because they reflect institutional interest. Persistent outflows suggest that large investors are stepping back, at least temporarily.
Reasons Behind ETF Outflows
Profit taking after recent gains
Year end portfolio rebalancing
Holiday related low trading activity
Cautious outlook ahead of options expiry
While outflows do not always signal a trend reversal, they can limit upside momentum in the short term.
Thin Holiday Liquidity Increases Volatility Risk
The timing of the options expiry during the holiday season adds another layer of uncertainty. With many traders away from their desks, liquidity is thinner than usual.
Low liquidity can magnify price moves once large positions unwind. This means Bitcoin could see sharper moves in either direction once options contracts expire.
Historically, post holiday trading periods have produced sudden price shifts as volume returns.
Why 90,000 Is a Key Psychological Level
Round numbers like 90,000 often act as psychological barriers in financial markets. Traders place sell orders near these levels, expecting resistance.
For Bitcoin, breaking above 90,000 would likely attract momentum traders and trigger new buying interest. Failing to do so keeps the market cautious.
Technical analysts note that sustained trading above 90,000 could open the door to higher levels, while rejection may lead to consolidation.
Broader Market Sentiment Remains Mixed
Despite near term pressure, overall sentiment around Bitcoin remains cautiously optimistic.
Positive Factors Supporting Bitcoin
Long term adoption trends remain strong
Institutional infrastructure continues to grow
Bitcoin remains above key long term averages
Supply remains limited
Negative Factors Limiting Upside
ETF outflows reduce buying pressure
Large derivatives activity creates uncertainty
Macro economic concerns remain
Holiday liquidity distorts price action
This balance of forces has kept Bitcoin in a narrow trading range.
How Traders Are Positioning Ahead of Expiry
Many traders are choosing to wait on the sidelines until the options expiry passes. Others are using short term strategies to take advantage of reduced volatility.
Some investors are watching key support levels around 85,000. A break below could trigger further selling, while holding above may strengthen confidence.
Experienced traders emphasize patience during periods of heavy derivatives influence.
What Happens After the Options Expiry
Once the large batch of options expires, the artificial price pressure caused by hedging may ease.
This often leads to one of two outcomes.
A volatility expansion with a strong directional move
A continued range as traders reassess market conditions
Given the thin liquidity, even moderate buying or selling could have an outsized impact.
Bitcoin and the Role of Institutional Investors
Institutional participation has become a major driver of Bitcoin’s price over the past year. ETFs have made access easier for traditional investors.
While recent outflows are notable, analysts caution against overreacting. Short term withdrawals do not erase the long term trend of institutional interest.
Many expect flows to stabilize once the holiday period ends.
Bitcoin Compared to Other Risk Assets
Bitcoin’s recent behavior mirrors that of other risk assets facing year end uncertainty. Stocks commodities and crypto markets often slow during this period.
As global markets prepare for the new year, traders are positioning cautiously rather than aggressively.
This suggests that Bitcoin’s current struggle may reflect timing rather than a shift in fundamentals.
What Investors Should Watch Next
Several factors could shape Bitcoin’s next move.
ETF flow data after the holidays
Price reaction following options expiry
Changes in trading volume
Macro economic signals
Technical levels around 85,000 and 90,000
A strong move above resistance could renew bullish momentum.
Long Term Outlook Remains Constructive
Despite short term challenges, many analysts maintain a positive long term outlook for Bitcoin.
Limited supply increasing adoption and growing institutional frameworks continue to support the broader trend.
Periods of consolidation are seen as healthy pauses rather than warning signs.
Frequently Asked Questions
Why is Bitcoin stuck below 90,000
Bitcoin faces resistance due to large options expiry ETF outflows and low holiday liquidity.
What is a Bitcoin options expiry
It is when derivatives contracts expire forcing traders to close or settle positions.
Are ETF outflows bearish for Bitcoin
Short term outflows can pressure price but do not always signal a long term trend change.
Could volatility increase soon
Yes volatility may rise after options contracts expire and liquidity returns.
Final Thoughts
Bitcoin’s struggle below 90,000 reflects a market caught between caution and opportunity. Record options expiry ETF outflows and thin holiday trading have compressed price action.
Once these short term pressures fade the market may find clearer direction. Until then traders and investors remain watchful.
Continue HERE: https://xtraprofit.com/
https://xtraprofit.com/bitcoin-price-87000-2025-santa-rally-bitcoin-crash/#respond
https://xtraprofit.com/blue-owl-buy-200-million/
https://xtraprofit.com/investing-the-stock-market-the-complete-beginners-guide/
https://xtraprofit.com/meta-plans-major-cutbacks-to-metaverse-division-as-ai-investments-intensify/
Bitcoin continues to prove that patience is often required during moments of uncertainty.
Bitcoin struggles below 90000 #Bitcoin struggles below 90000
#Bitcoin struggles below 90000
#Bitcoin struggles below 90000
https://edition.cnn.com/
2 Comments on “$23.6 Billion Bitcoin struggles below 90000 Options Expiry and $175 Million ETF Outflows Keep”