Bitcoin slipped to the $87,000 zone on Wednesday, pressured by thinner year-end liquidity and continued capital exiting U.S. spot exchange traded funds, after repeated failures to hold gains above the $90,000 level. Trading activity remained calm as markets moved into the Christmas and year end holiday window, with many investors temporarily stepping away from active positioning.
Bitcoin has shown limited upward drive across recent sessions, with price action staying in a tight band, reflecting softer risk appetite and lower liquidity rather than a major shift in market structure. The digital asset struggled to build fresh momentum after consistent rejections near the closely watched $90,000 resistance, which has acted as a short term ceiling for traders.
Market pressure increased further after U.S.-listed spot Bitcoin ETFs posted nearly $500 million in net outflows last week, according to SoSoValue data, signaling slower institutional accumulation after strong and steady inflows earlier in the year. The pullback in fund demand added an extra layer of weight on sentiment, especially as markets thinned into the holiday week.
Despite a strong tone in U.S. equity markets backed by tech stock strength and a Q3 GDP reading that confirmed solid economic expansion Bitcoin did not mirror the same upside drive. It also failed to benefit from the fresh record highs seen in precious metals such as gold and silver, even as capital rotation into safe haven assets gathered pace on geopolitical uncertainty and expectations for future Fed rate cuts.
Expectations for eventual U.S. rate reductions remain supportive for higher risk assets over the medium term, as traders still price in a path of easier rates through 2026, supported by signs of cooling inflation. Lower interest rates typically reduce the opportunity cost of holding non yielding assets, including Bitcoin, a dynamic that helped fuel its earlier rise this year.
Across the broader digital asset market, altcoins continued their quiet downward tilt. Ethereum dropped more than 1%, XRP fell about 1.6%, Solana and Cardano logged sharper losses, while Polygon saw a mild pullback. Meme coins also softened, led by declines in Dogecoin and the TRUMP token, as crypto markets reflected a general slowdown in risk exposure into year end.
Stay informed about global markets through our previous analyses. and Now, you can also benefit from LDN company services via the LDN Global Markets trading platform.
