Bitcoin Price Struggles at $88,000 as Thin Holiday Trading Stalls Year-End Rally
Bitcoin is hovering near $88,000 amid thin holiday trading, failing to sustain a year-end rally due to low liquidity and market uncertainty.Summary
The price of Bitcoin was trading around $88,063, up slightly over 24 hours, but trading volume was muted at roughly $40 billion due to thin holiday participation as December ends. The market is struggling to break out of a range between $85,000 and $95,000, which has persisted since a sharp October sell-off that followed an all-time high. This stagnation contrasts with traditional risk assets, and Bitcoin is on track for its first annual loss in three years, down about 5% from last December. Factors contributing to the struggle include the flushing out of leveraged positions in October and weakening demand for spot Bitcoin ETFs, which saw about $6 billion in outflows in Q4. Furthermore, a recent record options expiry caused derivatives activity to drop significantly, leaving dealers short gamma, which can amplify price moves on low liquidity. Analysts suggest key resistance is at $91,400 and $94,000, with critical support at $84,000.
(Source：Bitcoin Magazine)