Bitcoin Falls to $87,000 on Thin Year-End Liquidity
Expectations for a more bullish 2026 remain intact, driven by the possibility of a more accommodative U.S. monetary policy.
Quick overview
- Bitcoin is experiencing downward pressure, currently trading at $86,903, with a 1.4% decline for the week.
- Ethereum and several altcoins are also facing losses, with Ethereum down 1.8% and Ripple falling 2.3%.
- Ongoing outflows from exchange-traded funds indicate profit-taking and reduced institutional demand for cryptocurrencies.
- Despite current struggles, there is optimism for a more bullish market in 2026 due to potential looser monetary policy from the Federal Reserve.
The leading cryptocurrency is under pressure from exchange-traded fund outflows, though investors remain attentive to the prospect of looser monetary policy from the Federal Reserve.
The cryptocurrency market is trading lower on Friday. Bitcoin (BTC) is down 1.3% to $86,903, posting a 1.4% weekly decline, according to Binance.
Meanwhile, Ethereum (ETH) is slipping 1.8% to $2,913. Altcoins are also under pressure, with BNB down 1.8%, Ripple (XRP) falling 2.3%, and Solana (SOL) losing 1.6%.
A Christmas without good news for Bitcoin
Christmas trading brought no relief for Bitcoin, which continues to struggle to break above the $90,000 threshold. Thin year-end liquidity and ongoing outflows from exchange-traded funds have kept investors cautious, focusing on technical levels and short-term flows rather than long-term fundamentals.
Recent data show investors pulling money from several major ETFs, pointing to profit-taking and a decline in institutional demand.
Still, Bitcoin is finding some support from sustained interest in digital assets as an alternative store of value. Expectations for a more bullish 2026 remain intact, driven by the possibility of a more accommodative U.S. monetary policy next year, amid leadership changes at the Federal Reserve.
Traditional Markets
Major Wall Street indexes are trading slightly higher on Friday, extending their upward streak following Christmas Eve. Meanwhile, Asian equities hit a six-week high, while the sharp rally in precious metals showed no signs of easing.
Markets in Australia, Hong Kong, and most of Europe are closed on Friday, and global market liquidity is expected to remain thin.
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