Bitcoin edged higher on Friday, trading close to the $89,000 level, but continued to move within a tight range below the key $90,000 resistance. The cryptocurrency ended 2025 in negative territory, weighed down by thin liquidity and softer institutional participation.
By 09:21 ET (14:21 GMT), Bitcoin was up 0.8% at $88,708.
Despite the modest daily gain, Bitcoin closed 2025 with a 6% decline. Losses were concentrated in the final quarter of the year, when prices fell more than 20%.
Bitcoin remains rangebound as ETF outflows persist
Bitcoin has traded within a narrow band between roughly $85,000 and $90,000 over the past month, signaling a consolidation phase as the new year begins.
The sideways price action follows a strong rally earlier in 2025, which peaked in October when Bitcoin reached record highs. Since then, institutional demand has slowed, with many large investors shifting into a wait-and-see mode after heavy allocations earlier in the year.
Net inflows into Bitcoin investment products declined during the fourth quarter as volatility increased and some funds trimmed exposure. This cooling demand has weighed on overall price momentum.
Bitcoin exchange-traded funds recorded net outflows of $3.5 billion in November and $1.1 billion in December, according to data from sosovalue.
Liquidity also thinned toward year-end as trading activity slowed during the holiday period.
Unlike other major asset classes, Bitcoin did not benefit from the traditional year-end rally in December. Global equities and gold advanced on optimism surrounding U.S. interest rate cuts and easing financial conditions, with gold hitting record highs as safe-haven demand increased.
Bitcoin, however, remained largely disconnected from those broader trends, as traders focused on internal market dynamics and weakening capital inflows.
Expectations for further U.S. monetary easing remain intact after the Federal Reserve cut interest rates in December. Markets are currently pricing in two additional rate cuts in 2026.
Looking ahead, traders are watching closely to see whether Bitcoin can break above resistance near $90,000 and hold that level on a sustained basis.
Crypto prices today: altcoins post gains
Altcoins recorded moderate gains alongside Bitcoin on Friday.
Ethereum rose 1.6% to $3,025.31, while XRP advanced 2.3% to $1.89.
Solana climbed more than 2%, while Cardano and Polygon posted stronger moves, jumping 5.8% and 8.5%, respectively.
Among meme tokens, Dogecoin surged 8.1%, while the TRUMP token gained 4.7%.
