Bitcoin’s rally lost steam again on Tuesday, with the world’s largest cryptocurrency drifting back toward the $87,000 zone after failing to hold gains above the psychologically important $90,000 level. The pullback reflects a mix of year-end trading fatigue, persistent ETF outflows, and a broader pause in risk appetite across global markets.
By early Asian trading hours, Bitcoin was down around 2.5%, changing hands near $87,458. The decline came just a day after a brief breakout attempt above $90,000 fizzled out almost immediately, a pattern that has repeated several times in recent weeks.
$90,000 remains Bitcoin’s toughest barrier
Despite strong headlines earlier this year and renewed optimism around crypto adoption, Bitcoin has repeatedly stalled near $90,000. Analysts point to heavy sell orders and profit-taking at that level, suggesting traders are reluctant to chase prices higher without a fresh catalyst.
Technical charts show Bitcoin locked in a narrow range, with short-lived spikes failing to attract sustained buying interest. In simple terms, the conviction just is not there right now.
Social media sentiment mirrors this hesitation. While long-term holders remain confident, short-term traders are increasingly vocal about exhaustion after months of volatile swings and sharp reversals.
ETF outflows signal cooling institutional interest
One of the biggest drags on Bitcoin’s price has been steady outflows from U.S.-listed spot Bitcoin ETFs. Earlier in the year, these products were a major force behind Bitcoin’s surge to record highs, drawing in large pools of institutional capital.
That trend has now flipped. Continued redemptions suggest big investors are either locking in profits or waiting on the sidelines for clearer signals from macroeconomic conditions. The slowdown has removed a key pillar of support that previously helped absorb selling pressure.
Market watchers note that ETF flows have become a crucial sentiment indicator for crypto, often influencing short-term price direction more than retail activity.
Holiday liquidity makes moves louder
With global markets heading into the final stretch of the year, trading volumes have thinned noticeably. Holiday liquidity tends to exaggerate price swings, but it also makes rallies fragile.
Bitcoin’s recent price action reflects exactly that dynamic, sudden jumps followed by equally quick retreats. Without deep liquidity, even modest sell orders can push prices lower, while breakouts struggle to sustain momentum.
Investors are also bracing for the release of minutes from the U.S. Federal Reserve’s December policy meeting. The central bank’s recent rate cut boosted hopes for looser financial conditions, which typically favor risk assets like cryptocurrencies.
However, uncertainty around the timing and scale of future rate cuts has kept markets on edge. Any signs of disagreement among policymakers could reshape expectations for 2026, influencing everything from stocks to digital assets.
Lower interest rates generally make speculative investments more attractive, but right now, traders appear unwilling to make aggressive bets until the policy outlook becomes clearer.
Altcoins follow Bitcoin lower
The broader crypto market echoed Bitcoin’s weakness, with most major tokens trading in the red. Ethereum slipped around 3% to near $2,950, while XRP eased roughly 1.6% to $1.86.
Solana declined close to 3%, Cardano fell sharply by over 6%, and Polygon dropped more than 4%. Even meme coins were not spared, with Dogecoin and the $TRUMP token both sliding nearly 3%.
For now, the crypto market appears stuck in a holding pattern, waiting for fresh liquidity, clearer policy signals, or a strong narrative to break Bitcoin out of its tightening range. Until then, volatility may continue, but conviction remains in short supply.
