Bitcoin Consolidates Near $87K Amid Holiday Liquidity Drought and Institutional Outflows

Source: CryptoNewsNet Original Title: Bitcoin price consolidates near $87K as downside risk persist Original Link:

Market Overview

It’s been a difficult last few weeks of 2025 for crypto, and Bitcoin (BTC) showed that this will likely continue into early 2026 as bulls struggled on Monday. This trend, however, also indicates that the benchmark digital asset has settled into a period of relative stability.

On December 29, BTC traded around the $87,000 level, hovering below $90,000 amid reduced holiday liquidity and cautious investor sentiment.

Bitcoin Briefly Touches $90k Before Retreating

Bitcoin briefly surpassed the psychologically significant $90,000 mark on December 29, reaching an intraday high of approximately $90,299 during early Asian trading sessions.

This surge reflected fleeting optimism, driven by spot buying and limited short liquidations in thin markets. However, the rally proved short-lived, with selling pressure emerging as the price approached higher levels, leading to a retreat toward $86,717.

At the time of writing, BTC had nonetheless recovered modestly to reclaim territory above $87,700. With market weakness showing, the cryptocurrency has maintained a largely range-bound profile.

Bears currently hold an upper hand with losses of around 2% over the past week and 3% across the month. This performance paints a market in consolidation, where brief spikes fail to sustain amid profit-taking and subdued trading volumes typical of the holiday season.

Analyst Perspectives on Bitcoin Price Outlook

Bitcoin lingers below the $90,000 barrier because bearish resolve among sellers has kept breakthroughs in check. This outlook has been clearly demonstrated after digital asset investment products recorded substantial outflows last week.

Data reveal that approximately $446 million exited the crypto market. Bitcoin bore the brunt, experiencing net redemptions of $443 million, while Ethereum saw outflows of $59.5 million. Institutional sales for BTC are a trend some have picked out.

In contrast, alternative cryptocurrencies attracted capital, with XRP registering the strongest inflows at $70.2 million and Solana drawing $7.5 million.

As such, market observers remain guarded in their outlook. Analysts at QCP Capital highlighted that Bitcoin’s modest upward movement occurred against a backdrop of low holiday trading activity. Support for the price stemmed primarily from spot and perpetual market purchases rather than widespread forced liquidations of short positions.

Post-options expiry positioning reveals persistently high perpetual funding rates, indicating potential for upward gamma exposure should BTC hold above roughly $94,000.

Meanwhile, downside protective hedging has diminished, though sharply reduced open interest signals limited conviction among traders. Directionality may hinge on a resurgence in market liquidity as normal trading resumes in the new year.

Outlook

Overall, the current environment points to a cryptocurrency market pausing for breath after a tumultuous 2025. While structural advancements in adoption and regulation have bolstered long-term prospects, near-term price action reflects broader risk aversion and seasonal factors.

Investors will wait for clearer catalysts. Potentially, this will come from macroeconomic shifts and renewed institutional inflows. A break above $94k could be key to bulls regaining momentum.