Bitcoin moved lower toward the $87,000 level on Wednesday, extending recent weakness after another failed attempt to regain ground above $90,000. Thin year-end trading conditions and continued outflows from U.S.-listed spot Bitcoin exchange-traded funds weighed on market sentiment.
The world’s largest cryptocurrency was last trading 0.9% lower at $87,113 by 06:00 ET, as buyers struggled to generate momentum during the holiday-thinned session.
Bitcoin weighed down by ETF outflows
Bitcoin showed little strength during early Asian trading, continuing a stretch of subdued price action seen in recent days. Reduced liquidity ahead of the Christmas holidays has kept many traders sidelined, limiting follow-through after repeated rejections near the key $90,000 resistance level.
Pressure has also come from persistent ETF outflows. Data from crypto analytics firm SoSoValue indicated that U.S. spot Bitcoin ETFs recorded nearly $500 million in net outflows last week, signaling a slowdown in institutional demand following strong inflows earlier in the year.
Fed rate cut expectations remain supportive
The broader market backdrop offered mixed signals for Bitcoin. U.S. stocks rallied overnight, with major equity indexes closing at record highs after strong technology sector gains and data showing the U.S. economy grew at a robust 4.3% annualized pace in the third quarter.
At the same time, traditional safe-haven assets outperformed, as gold and silver climbed to record levels amid ongoing geopolitical uncertainty and expectations for easier monetary policy.
Despite often being viewed as a hedge against inflation and financial instability, Bitcoin failed to benefit from the rallies in equities or precious metals.
Still, expectations for U.S. interest rate cuts remained intact. Markets continued to price in Federal Reserve easing in 2026, betting that inflation pressures will ease over the medium term. Lower interest rates typically support risk assets by reducing the opportunity cost of holding non-yielding investments, a dynamic that helped drive Bitcoin’s rally earlier this year.
Altcoins trade lower amid quiet conditions
The broader cryptocurrency market also remained under pressure, with most altcoins posting modest declines amid muted trading activity.
Ethereum slipped more than 1% to $2,927.66, while XRP fell 1.6% to $1.86. Solana and Cardano both recorded sharp losses of over 2%, and Polygon edged down 1%.
Among meme tokens, Dogecoin declined 2.4%, while TRUMP dropped 2.3%, reflecting continued risk aversion across speculative assets.
