On December 29, Bitcoin briefly rose above the $90,000 mark, temporarily boosting its market capitalization above $1.8 trillion and helping the total crypto market cap surpass $3.1 trillion. However, this surge was short-lived: the price quickly retraced below the psychological $90,000 level, revealing a liquidity deficit in this zone. As a result, the observed bounce-and-pullback reinforced the impression of a persistent bearish market structure, where resistance remains stronger than support.
Bitcoin Reaches $90,000 Then Quickly Retraces
The breakout above $90,000 was brief and accompanied by a swift return below this level, indicating a "liquidity void" and significant selling volume in this price area. This behavior is known as a technical rejection: former resistance failed to turn into support, and the price bounced downward. When discussing current movements, it is helpful to refer to a more detailed price overview, such as the article Bitcoin Price 2025, which analyzes the situation around the $90K level.
Technical Analysis and Liquidity
The sharp retracement after the breakout highlighted significant "upper" liquidity at the $90,000 level, sufficient to quickly sell buyers’ positions. Some indicators point to a cooling of aggressive selling, but this does not imply an immediate return of bulls to full market control. For a detailed breakdown of levels and scenarios, see the corresponding technical analysis, which covers key levels and possible price trajectories.
Impact of ETFs and Institutional Investors
In the last weeks of December, there were steady outflows from spot Bitcoin ETFs, signaling caution among major players and reinforcing a risk-off market mood. At the same time, the fear and greed index hovered around 25, reflecting predominantly pessimistic expectations and reduced risk appetite among investors. These factors, combined with liquidity shortages, increase the likelihood of short-term volatility around key levels.
Optimism in the Futures Market
Despite ETF outflows and overall institutional caution, the futures market shows heightened activity: futures funding rates are at a two-month high, and open interest has increased by approximately $1 billion. This suggests that some retail and margin traders are betting on a price recovery, adding leverage and opening new positions. Together, these signals create a mixed picture: institutions are withdrawing funds, while some traders are increasing exposure through futures.
Exchange Activity and Large Withdrawals
According to observations, exchanges like Binance, Bybit, and OKX have been steadily increasing positions, with Gate.io leading accumulation on the platform, indicating localized growth in trading activity. Meanwhile, large whale withdrawals—around 20,000 BTC—were noted, which may have further reduced available liquidity on exchanges and intensified price pressure. The combination of large withdrawals and retail accumulation raises short-term volatility risks.
Why This Matters
If you mine and hold BTC, such events mean that prices can fluctuate sharply in the short term: a quick breakout may prove "false" due to liquidity voids, followed by a rapid retracement. This is important for calculating mining profitability, planning reward sales, and timing fund transfers from exchanges.
For miners operating 1–1000 devices, volatility primarily affects monetization timing: during sharp swings, the gap between desired sale price and actual price can be significant, especially if some BTC is stored on exchanges where large whale withdrawals are visible. ETF outflows and a low fear/greed index signal increased institutional caution but do not directly change mining hardware technical characteristics.
What To Do?
- Plan sales: stagger BTC withdrawals over time to avoid large intraday pullbacks.
- Manage storage: consider that large whale withdrawals can reduce exchange liquidity, so keep part of rewards in cold storage.
- Monitor futures metrics: rising open interest and positive funding rates may indicate increased volatility—important when planning short-term sales.
- Assess risk management: avoid increasing leverage and do not commit more funds than you can handle in a volatile environment.