Bitcoin held its ground above the $90,000 support level on Thursday, benefiting from a pause in US trading activity during the Thanksgiving holiday and sparking fresh optimism that a more sustained recovery may be forming.
Data from market tracking platforms showed BTC/USD stabilizing after hitting weekly highs near $92,000 earlier in the day.
The lack of a Wall Street session removed short-term selling pressure, offering bulls a temporary window of relief.
Traders said attention now turns to the critical resistance zone near the 2025 yearly opening price at just over $93,000.
Crypto analyst Michaël van de Poppe described the area as a pivotal barrier that could determine Bitcoin’s next major move.
“If this levels breaks, Bitcoin is back up to $100K,” he wrote on X.
He added that the latest upswing represented “a pretty strong bounce upwards,” but cautioned he wanted to see “some consolidation” before a decisive breakout attempt.
Market liquidity indicators suggest that a substantial cluster of resting orders sits between $97,000 and $98,000.
Trader Daan Crypto Trades identified this zone as a key near-term upside target, noting that heavy sell-offs from earlier in the month created a “big liquidity pocket” at that level.
He pointed out that the region also aligns with a horizontal price structure that could attract both short-covering and breakout buyers.
Some traders maintain that a retest of $88,000 would not be unexpected, with van de Poppe saying he “wouldn’t mind” such a move and arguing that the broader crypto bull cycle remains “far from over.”
On-chain indicators show improving conditions underneath the surface.
J. A. Maartunn, a contributor to analytics platform CryptoQuant, reported that spot taker cumulative volume delta — a measure that has hovered in negative territory — has recently moved back toward neutral.
He described the shift as a “significant step forward” for market recovery.
Earlier this month, analysts highlighted the negative trend in spot taker CVD as one of several risk factors as Bitcoin traded above $100,000.
CryptoQuant researchers now argue that data across spot, futures, and on-chain markets reflects the unwinding of what they termed a “leveraged phase.”
In a recent analysis, XWIN Research Japan wrote that the market is showing signs of longer-term capital returning, citing a retail futures activity indicator that has flipped green and historically aligns with key market turning points.
The current stabilization comes after a volatile stretch for Bitcoin.
Earlier in November, the market wrestled with heavy selling and rapid liquidations tied to broader macro uncertainty and rising geopolitical tensions.
Despite that turbulence, Bitcoin’s ability to hold $90,000 suggests buyers are actively defending strategic levels as the year heads into its final weeks.
With holiday-related lower volumes and upcoming macro events likely to influence market direction, traders say Bitcoin’s next moves could define the opening narrative for 2026.
For now, the return of bullish sentiment, improving liquidity conditions, and on-chain stabilization are raising hopes that the recent rebound may be more than a temporary pause.
Bitcoin (BTC) has begun a steady recovery after last week’s steep correction, moving back toward the $87,000 to $90,000 range.
The cryptocurrency fell from $106,000 to $80,600 in just 10 days, prompting renewed speculation over whether BTC has reached a local bottom.
The rebound comes even as major whale holders continue to sell their BTC, though mid-sized holders and long-term accumulators are showing increased conviction in the market.
Accumulation and Distribution Patterns
Onchain analytics reveal significant differences in behavior between various BTC holder cohorts.
Wallets holding more than 10,000 BTC, along with institutional investors holding 1,000 to 10,000 BTC, acted as consistent sellers during the correction, contributing to downward pressure.
Retail wallets, defined as holding less than 10 BTC, also sold off over the past 60 days, providing little market support.
In contrast, mid-sized holders in the 10–100 BTC and 100–1,000 BTC ranges accumulated BTC, helping absorb sell-side pressure and stabilize prices.
Demand from Bitcoin “accumulator addresses” hit a record 365,000 BTC on Nov. 23, up from 254,000 BTC on Nov. 1, indicating growing long-term confidence among certain investors.
Futures Market and Short Squeeze Potential
The recent BTC crash was largely fueled by futures markets, where cascading long liquidations, forced selling, and margin calls pushed BTC into the $80,000 range.
CryptoQuant data shows that traders attempting to long the correction have been squeezed out, with daily funding rates briefly turning negative.
Analyst Darkfost warned that if shorts continue to pile up while BTC gradually rises, the market could enter a “disbelief phase,” creating the conditions for a sharp short squeeze.
Long liquidation heatmaps from Hyblock Capital indicate $2.6 billion in long liquidations at $80,000, while short liquidations surged over $8.4 billion near $98,000, showing the influence of liquidity bands at $94,000, $98,000, and $110,000.
These dynamics suggest that BTC’s rebound may continue toward the $90,000 mark as mid-sized holders and accumulators provide steady support.
BlackRock’s head of digital assets, Robbie Mitchnick, has suggested that most major asset managers are not viewing Bitcoin through the lens of day-to-day payments when evaluating its role in portfolios.
In a recent podcast appearance, Mitchnick emphasized that institutions are largely focused on Bitcoin’s store-of-value appeal rather than its potential as a global payment technology.
“I think for us, and most of our clients today, they’re not really underwriting to that global payment network case,” Mitchnick said.
“That’s sort of maybe out-of-the-money-option-value upside,” he added.
The comments highlight a continued divide between the vision of Bitcoin as digital cash and the practical considerations driving institutional adoption today.
Focus Remains on the Digital Gold Narrative
Mitchnick explained that the speculative nature of Bitcoin’s payment utility means investors remain more committed to the asset’s “digital gold” narrative.
He said Bitcoin may still evolve into a widely used payment tool, but that scenario involves more uncertainty than its role as a store of value.
He described the payments thesis as “a little bit more speculative,” adding that institutions prioritize the resilience and long-term investment use case rather than transactional adoption.
Significant Scaling Needed for Bitcoin Payments
According to Mitchnick, substantial technical progress would be required before Bitcoin could realistically compete with traditional payment networks.
“There’s a lot that needs to happen in terms of Bitcoin scaling, Lightning, and otherwise to make that possible,” he said.
The comments echo broader industry concerns around the future of Bitcoin scaling solutions.
Earlier analyses, including an August 2024 report from Galaxy Research, warned that many Bitcoin layer-2 networks — especially “rollups” — may struggle over the long term, despite current enthusiasm around faster and cheaper transaction layers.
Other blockchain networks are being used for a variety of real-world purposes, including sending payments and powering online bingo sites.
Stablecoins Surging Ahead in Payments Sector
While Bitcoin’s payment future remains uncertain, Mitchnick said stablecoins have already demonstrated clear adoption.
He described the sector as “hugely successful,” noting that stablecoins offer “massive product market fit as a payment instrument as a way of moving value around efficiently.”
Mitchnick said stablecoins are poised to grow well beyond their existing uses in trading and decentralized finance.
“Stablecoins have the potential to greatly expand where they are used today, going beyond just the sort of crypto trading ecosystem and DeFi to actually doing retail remittance payments, corporate, multinational, cross-border transactions, and capital market settlement activity,” he said.
He added that while Bitcoin could compete in certain payment categories — such as retail remittances — institutional investors still view that scenario as uncertain.
“At some point it is possible, but it’s a more speculative thing to underwrite at this point,” he said.
Stablecoin Momentum Influencing Long-Term Bitcoin Forecasts
The rapid growth of stablecoins has already influenced how analysts model Bitcoin’s long-term value.
ARK Invest CEO Cathie Wood recently said that the sector’s accelerating expansion forced her to revise her earlier projections for Bitcoin’s 2030 valuation.
“Stablecoins are usurping part of the role that we thought that Bitcoin would play,” she said.
Wood previously expected Bitcoin to hit $1.5 million by the end of the decade, but now believes reducing that estimate by roughly $300,000 may be justified given stablecoin adoption.
“I think emerging markets are huge in this regard and we’re starting to see institutions in the United States focused on new payment rails,” she said.
Industry Leaders Expect Full Transition to On-Chain Money
The trend toward stablecoin-based payment systems appears to have strong support among industry builders.
Tether co-founder Reeve Collins told Cointelegraph in September that he expects “all currency” to transition into stablecoin form by 2030, reflecting a broader shift toward on-chain financial infrastructure.
That outlook contrasts with the more cautious stance on Bitcoin’s payment potential, underscoring how digital assets may take on distinct roles within future financial systems.
Bitcoin investor Strategy is facing scrutiny after a steep decline in its share price this year, but long-term data shows the company’s Bitcoin-driven model remains far more resilient than short-term charts suggest.
Google Finance data shows Strategy’s stock has dropped nearly 60% over the past year and more than 40% year-to-date.
The stock was trading near $300 in October but has since fallen to around $170.
Despite Declines, Bitcoin Holdings Still in Profit
Some investors have interpreted the slump as evidence that Strategy’s approach has been “exposed.”
However, BitcoinTreasuries.NET data shows the company acquired its Bitcoin at an average cost of $74,430.
With Bitcoin trading near $86,000, Strategy remains up about 16% on its overall Bitcoin purchases.
The company’s long-term stock performance also paints a different picture.
Over the past five years, Strategy shares have climbed more than 500%.
For comparison, Apple gained 130% over the same period, while Microsoft increased by 120%.
Even over two years, Strategy’s stock rose 226%, outperforming Apple’s 43% and Microsoft’s 25%.
Why Investors Are Shorting Strategy
The recent price decline may have less to do with Bitcoin’s fundamentals and more to do with how institutional investors hedge their crypto exposure.
In a CNBC interview, BitMine chairman Tom Lee said Strategy has become the most convenient vehicle for hedging Bitcoin.
“Someone can use MicroStrategy’s options chain, which is so liquid, to hedge all of their crypto,” he said. “The only convenient way to hedge someone’s long is to short MicroStrategy or buy puts.”
This dynamic has effectively turned Strategy into a pressure valve for the broader crypto market, absorbing volatility, hedges and short positions that may not reflect its underlying business strategy.
Strategy Expands Its Bitcoin Holdings
Despite the turbulent market, Strategy continues building its Bitcoin treasury.
Chairman Michael Saylor reaffirmed his commitment to the company’s approach, writing on X that he “won’t back down.”
On Nov. 17, the company announced the purchase of 8,178 BTC for $835.6 million.
The acquisition — significantly larger than its typical weekly purchases — brought Strategy’s total holdings to 649,870 BTC, valued at nearly $56 billion.
Liquidity Slowdown Adds to Market Pressure
On Nov. 6, crypto market-maker Wintermute attributed recent market weakness to slowing liquidity flows across stablecoins, exchange-traded funds and digital asset treasuries.
The firm said inflows in all three areas had flattened, contributing to widespread price pressure.
Data from DefiLlama shows digital asset treasury inflows fell from almost $11 billion in September to just $2 billion in October — an 80% decline following the liquidation of around $20 billion in crypto positions.
Inflows decreased further in November, reaching about $500 million as of Monday, marking a 75% drop from October.
Despite these conditions, Strategy’s long-term performance continues to outpace major tech benchmarks, underscoring the company’s conviction in Bitcoin even amid near-term turbulence.
Concerns about deeper Bitcoin price declines are growing after several prominent long-term holders began offloading major portions of their holdings.
Gold investor and economist Peter Schiff believes these moves signal a structural shift in the market that could amplify future volatility.
He argued over the weekend that Bitcoin is “finally having its IPO moment,” claiming the market has matured enough for early adopters to exit with significant liquidity.
“This much Bitcoin moving from strong to weak hands not only increases the float, but also means future selloffs will be bigger,” Schiff said.
Long-Term Holders Increase Selling Activity
Fresh blockchain data shows that whales and other long-established Bitcoin holders sold more than 400,000 BTC throughout October.
That level of selling contributed to meaningful downward pressure and pushed Bitcoin’s price below the $85,000 mark.
The cryptocurrency market has been split in recent weeks, with some analysts expecting the bull cycle to resume once liquidity conditions improve, while others warn that these movements may be early signs of a broader bearish reversal.
Exchange inflows, which track the amount of Bitcoin being sent to trading platforms, remain elevated and indicate that additional selling could be underway.
Prominent Investors Exit Positions Amid Market Uncertainty
Notable early holder Owen Gunden became one of the most significant sellers this cycle after liquidating his entire 11,000 BTC position across October and November.
The stash, valued at approximately $1.3 billion, was accumulated during the earliest stages of Bitcoin’s development.
His exit was followed by another high-profile sale from Robert Kiyosaki, the “Rich Dad, Poor Dad” author and long-time Bitcoin supporter.
Kiyosaki disclosed on Friday that he sold all of his Bitcoin holdings, worth around $2.25 million.
He explained that he originally bought Bitcoin at approximately $6,000 and decided to take profits after the asset reached the $90,000 range.
According to Kiyosaki, the capital will now be redirected into income-producing ventures, though he stressed that he remains optimistic in the long term.
“I am still very bullish and optimistic on Bitcoin and will begin acquiring more with my positive cash flow,” he said.
Analysts Identify Key Drivers Behind the Price Decline
Market analysts at crypto exchange Bitfinex attribute the latest correction to two primary catalysts.
The first is the wave of large-scale selling from long-term holders seeking to lock in profits.
The second is heightened leverage in derivatives markets, which has led to liquidations that further intensified downward momentum.
Despite the short-term pressure, Bitfinex maintains that Bitcoin’s underlying fundamentals remain strong.
Institutional interest continues to increase, and analysts expect professional investors to keep accumulating BTC as part of long-term portfolio strategies.
Retail Investors May Struggle to Withstand Volatility
While institutions may continue building positions during market weakness, retail investors could amplify the next downturn.
Vineet Budki, CEO of venture firm Sigma Capital, said many retail participants lack conviction in the asset during periods of stress.
He warned that this behaviour could create extreme volatility if the market enters a new bearish phase.
Budki believes that retail selling could ultimately trigger an estimated 70% price decline in the next major bear cycle.
According to him, this dynamic—combined with the recent migration of Bitcoin from long-term holders to newer, less resilient market participants—may set the stage for a more dramatic correction than previous cycles.
Solana’s Uncertain Future
Solana has also suffered during the broader crypto market sell-off in recent weeks. However, many analysts remain bullish on SOL and have been accumulating at these lower prices.
Furthermore, the Solana blockchain is continuing to be used to transactions and Dapps. Those curious are Solana casinos can read analysis on Esports Insider and learn how Solana is powering many emerging digital sectors.
Market Braces for Potentially Wider Price Swings
Bitcoin’s recent movements highlight a growing divergence between long-term conviction holders and short-term participants seeking liquidity.
As early adopters exit with substantial profits and retail investors prepare for further volatility, analysts caution that the market may be entering a phase where price swings become even more pronounced.
While institutional inflows offer some stability, the broader market appears increasingly sensitive to selling events and macroeconomic shifts.
For now, traders continue to watch exchange inflows, whale behavior, and derivatives market positioning for signals on whether the selling pressure will ease or intensify in the weeks ahead.
Bitcoin traders posted noticeably more optimistic commentary on Friday after the likelihood of a US Federal Reserve rate cut in December surged sharply within a 24-hour period.
The CME FedWatch Tool showed the probability of a rate cut rising to 69.40% on Friday, up from 39.10% the previous day.
Some analysts argue the shift could provide the catalyst needed to stabilize Bitcoin’s recent price decline.
Crypto analyst Moritz wrote, “Let’s see if that’s enough to find a bottom here for now,” as Bitcoin traded near $85,071 and remained down roughly 10% over the past week.
Dovish Fed Commentary Sparks Market Reaction
The rise in rate-cut expectations followed comments from New York Federal Reserve president John Williams, who said the central bank could lower rates “in the near term” without jeopardizing inflation progress.
Bloomberg analyst Joe Weisenthal pointed to the remarks as the cause for the surge in futures pricing.
Not everyone is convinced the shift will lead to immediate relief.
Economist Mohamed El-Erian warned that investors should not get “carried away,” but broader sentiment across the crypto market leaned bullish.
Crypto commentator Mister Crypto summarized the mood by noting, “Usually this would be bullish.”
Analysts Highlight a Potentially “Bullish Setup”
Crypto analyst Jesse Eckel described the backdrop as highly favorable, saying, “If you zoom out, the setup is unfathomably bullish.”
Eckel added, “I don’t know why we keep going lower,” arguing that markets appear to be moving from a tightening cycle to an easing one.
Another analyst, Curb, said, “Crypto will explode in a massive rally,” if cuts arrive as many traders now expect.
Rate cuts historically benefit higher-risk assets such as cryptocurrencies by reducing the yield advantage of traditional savings vehicles.
Coinbase Institutional Says Odds Were Previously Mispriced
Coinbase Institutional also weighed in, saying in an X post that markets have been underestimating the probability of a cut.
“While markets are leaning toward ‘no cut’ this time, we believe the odds for a rate cut are actually mispriced,” the firm said.
The post noted that inflation signals and tariff-related economic research support a case for reducing rates sooner than expected.
Despite the boost in sentiment, the broader crypto market continues to show weakness.
The Crypto Fear & Greed Index fell to an “Extreme Fear” score of 14 on Friday, marking one of its lowest readings in recent weeks.
Tech and crypto markets saw renewed optimism in after-hours trading on Wednesday after Nvidia delivered quarterly results that surpassed expectations, helping to ease concerns that investor enthusiasm for artificial intelligence had grown overheated.
The semiconductor giant reported record revenue of $57 billion for the third quarter ended Oct. 26, a 62% climb year-over-year and significantly above the $54.7 billion expected by analysts.
Nvidia also announced quarterly profit of $31.9 billion, up 65% from last year, with full-year forecasts indicating demand for AI-related products remains robust.
The upbeat report arrived amid a stretch of weakness for tech equities, as investors feared the sector’s rapid AI-driven gains could be unsustainable.
Crypto and Tech Stocks Move Higher After Hours
Shares of Nvidia climbed more than 5% to $196 in post-market trading after closing the session at $186.52.
The positive earnings surprise triggered a broader rebound across crypto-linked companies, with Coinbase, Strategy and Circle Internet Group all seeing modest after-hours increases following declines earlier in the day.
Crypto exchange Bullish also gained about 1% after the bell, reversing a portion of its 3.7% drop despite reporting its strongest quarter since going public.
Major tech stocks including Apple, Microsoft, Alphabet, Amazon and Meta likewise moved higher in extended trading, reflecting improved sentiment across the broader sector.
Bitcoin and Ether Recover from Intraday Lows
The upbeat earnings report provided a lift to Bitcoin, which has suffered more than 10% losses over the past week during a broader market downturn.
Bitcoin dipped to $88,540 late Wednesday, its first time below $89,000 since late April.
The world’s largest cryptocurrency later climbed back toward $91,500 shortly after Nvidia released its earnings, easing some downward pressure.
Ether experienced a similar trajectory, falling to $2,873 — its lowest level since mid-July — before recovering above $3,000.
Analysts say the correlation between crypto assets and tech stocks appears to have strengthened as investors continue to treat both sectors as high-risk plays responsive to macro conditions.
Nvidia’s robust results, they say, may offer short-term relief to markets that have been rattled by concerns over rate policy, slowing growth and potential froth in AI-driven valuations.
Senator Tim Scott, the chair of the Senate Banking Committee, says he expects progress on a major crypto market structure bill as early as next month.
He told Fox Business that he aims to schedule a markup with the goal of sending the legislation to President Donald Trump early next year.
Scott said negotiations with Democrats remain ongoing, but he accused them of delaying action.
“Next month, we believe we can mark up in both committees and get this to the floor of the Senate early next year so that President Trump will sign the legislation making America the crypto capital of the world,” Scott said.
A Push for Regulatory Clarity
Lawmakers have been working to define the regulatory roles of the SEC and CFTC, particularly following the House’s passage of the CLARITY Act earlier this year.
That bill outlined the responsibilities of the two agencies and established rules defining when a token qualifies as a commodity or security.
The Senate has been developing its own version of the proposal, with the Agriculture Committee responsible for commodity oversight and the Banking Committee leading securities-related sections.
Both committees released discussion drafts over the past several months, leaving room for further negotiations before a final version is introduced.
Industry Leaders Call for Action
Supporters of the bill say that clearer federal rules are urgently needed to keep crypto businesses from moving offshore.
Coinbase CEO Brian Armstrong said in a video message that he has been in Washington pushing for the bill, adding that he believes lawmakers are making tangible progress.
“Senate banking is also working nights and weekends to get the next iteration of their text out, so we’ve got a good chance, I think, of a markup for this bill in December, hopefully get it to the president’s desk shortly thereafter,” Armstrong said.
“This would be a big milestone to get crypto unlocked with clear rules in the US, which would benefit all companies,” he said.
What Happens Next
If the Senate passes its version, the two chambers will need to reconcile their respective drafts.
Once a final bill is approved, it would be sent to President Trump for signature.
Republicans currently hold 53 seats in the Senate, compared to 47 for Democrats, meaning bipartisan backing will still be required to reach the 60 votes needed for passage.
The coming weeks will determine whether the long-delayed effort to build a national crypto framework will finally move forward.
Crypto investment products saw their heaviest weekly outflows since February, with $2 billion exiting global exchange-traded products amid falling risk appetite.
CoinShares reported on Monday that crypto ETPs experienced a 71% surge in outflows compared with the prior week, marking the third consecutive week of withdrawals and bringing the three-week total to $3.2 billion.
Monetary Uncertainty and Whale Selling Pressure the Market
James Butterfill, head of research at CoinShares, attributed the outflows to shifting expectations around monetary policy and selling activity from large crypto-native investors.
These factors pushed total assets under management in crypto ETPs down to $191 billion, a notable decline from the October peak of $264 billion.
United States Leads the Outflow Trend
The U.S. accounted for the overwhelming majority of withdrawals, totaling $1.97 billion.
Germany, however, was one of the few markets to see inflows, accumulating $13.2 million, diverging from the broader global pattern.
Outflows Spread Across Multiple Regions
Several other jurisdictions also recorded significant capital flight.
Switzerland saw $39.9 million in outflows, while Sweden lost $21.3 million.
Hong Kong, Australia and Canada posted combined redemptions of $23.9 million.
Bitcoin and Ether ETPs Hit the Hardest
Bitcoin investment products faced nearly $1.4 billion in outflows last week, representing around 2% of total Bitcoin ETP assets.
Ether funds experienced close to $700 million in redemptions, equating to roughly 4% of their total assets.
Smaller Altcoin ETPs Not Spared
Solana ETPs lost $8.3 million, and XRP products saw $15.5 million in outflows, highlighting broad-based weakening across single-asset offerings.
Investors Shift to Diversified and Short-Bias Products
While single-asset funds experienced selling pressure, multi-asset ETPs attracted $69 million in new inflows over the past three weeks.
The trend suggests investors are seeking broader market exposure and lower volatility as macro uncertainty rises.
Short-bitcoin products also gained traction, posting $18.1 million in inflows over the same period, reflecting a modest increase in hedging behavior.
Michael Saylor, executive chair of Strategy, has dismissed reports that the company reduced its Bitcoin holdings during the latest flash crash, calling the claims inaccurate and reaffirming the firm’s long-term accumulation strategy.
His comments arrived after a steep 24-hour price drop that pushed Bitcoin from above $100,000 to below $95,000.
Saylor Says Reports of Bitcoin Selling Are False
In a Friday post on X, Saylor said there was “no truth” to suggestions that Strategy had cut its Bitcoin reserves by about 47,000 BTC — a reduction worth $4.6 billion at current prices.
He emphasized that the company was continuing to purchase Bitcoin, even as volatility intensified and the price fell more than 4% in a single day.
“I think the volatility comes with the territory,” Saylor said in a CNBC interview on Friday.
“If you’re going to be a Bitcoin investor, you need a four-year time horizon and you need to be prepared to handle the volatility in this market.”
Strategy remains the world’s largest corporate Bitcoin holder with a treasury of roughly 640,000 BTC.
However, its dominance has tapered as other institutions increased their accumulation.
Companies including Coinbase and Metaplanet acquired more Bitcoin in October than Strategy, reducing the firm’s lead.
Strategy Stock Declines Amid Market Uncertainty
Shares of Strategy (MSTR) have mirrored some of the weakness seen in the crypto market.
According to Nasdaq data, the stock fell to $205.38 at the time of publication — a drop of more than 17% over the previous five days.
Market analysts noted that declining Bitcoin prices, combined with increased competition in corporate BTC accumulation, have added pressure to the stock.
Government Shutdown Ends, Bitcoin Reaction Mixed
The end of a 43-day U.S. government shutdown brought a temporary boost to financial markets earlier in the week, though it remains unclear whether the resolution will have a lasting influence on Bitcoin’s trajectory.
BTC surged above $106,000 on Sunday amid optimism that lawmakers were nearing a funding deal.
A second rally occurred on Wednesday after the House passed a continuing resolution followed by President Donald Trump signing it into law.
However, data from Nansen showed the rally faded once government operations officially restarted on Thursday.
Bitcoin’s price fell below $100,000 shortly afterward, suggesting that macro relief alone is insufficient to sustain upward momentum in current market conditions.