Bitcoin moved higher toward the $89,000 level on Friday but continued to trade below the key $90,000 resistance, as thin year-end liquidity and ongoing exchange-traded fund outflows kept investor appetite restrained.
The world’s largest cryptocurrency, Bitcoin, was last up 1.6% at $89,182 by 02:09 ET. While Bitcoin posted a weekly gain of around 1%, price action remained largely range-bound, reflecting subdued participation during the holiday period.
Despite recovering some ground this week, Bitcoin was still on track to end the year down nearly 5%. Earlier in the year, strong rallies had pushed prices above the $126,000 mark, but momentum has since cooled.
Bitcoin struggles below the $90,000 level
Bitcoin has repeatedly failed to reclaim territory above $90,000, a psychological barrier that has capped gains in recent sessions. Buyers remained cautious, with limited near-term catalysts and year-end positioning discouraging aggressive risk-taking.
Market sentiment has also been pressured by continued outflows from spot Bitcoin exchange-traded funds. Recent data showed investors withdrawing funds from several major ETFs, signalling profit-taking and softer institutional demand following Bitcoin’s earlier surge.
The broader crypto market reflected Bitcoin’s muted tone, with most major tokens trading within narrow ranges. In the absence of fresh macroeconomic data or policy signals during the holiday period, traders focused on technical levels and short-term flows rather than longer-term fundamentals.
Fed policy expectations offer support
Expectations of looser U.S. monetary policy in 2026 have helped limit deeper declines across crypto markets. Cooling inflation and the prospect of rate cuts from the Federal Reserve have continued to support digital assets as alternative stores of value, even as ETF flows remain uneven.
Investors are also monitoring year-end derivatives positioning, with large options expiries potentially contributing to short-term price compression. Such factors often keep prices locked in tight ranges until contracts roll off.
Altcoins mixed in range-bound trading
Altcoins showed mixed performance on Friday, broadly tracking Bitcoin’s modest gains. Ethereum rose 1.3% to $2,979, while XRP edged up 0.2% to $1.88. Solana posted slight gains, whereas Cardano and Polygon slipped around 1% each. Among meme tokens, Dogecoin and $TRUMP were largely unchanged.
