Bitcoin price news: Short-covering boosts BTC above $89,000

Bitcoin prices rallied to reclaim the $89,000 level during U.S. trading, marking a rare gain after a month of consistent declines during American market hours. Analysis of open interest data suggests this price increase was primarily due to short-covering—the closing of short positions—rather than the entry of fresh leveraged long positions, as open interest denominated in BTC slightly decreased. This subdued market activity, which also saw crypto stocks and broader indices remain relatively unchanged, is attributed to year-end de-risking, record spot Bitcoin ETF outflows (seven straight days of redemptions), and thin holiday liquidity. A strategist noted that major crypto assets remain below key systematic levels, with price action influenced by rollover flows and tax-related positioning, such as tax-loss harvesting seen in ETF outflows.

(Source：CoinDesk)