Bitcoin News Today: Bitcoin Resilience Outshines Crypto Selloff Amid ETF Divergence

Bitcoin has outperformed most crypto sectors over the last three months, according to analytics firm Glassnode. Despite the broader market experiencing extreme bearish sentiment, Bitcoin's price and market performance have shown resilience. The token is currently trading above $86,000 after slipping near a three-month low of $85,266 in recent sessions according to market data.

The overall crypto market remains under pressure, marked by "extreme fear" on the Crypto Fear & Greed Index. Altcoins like Ethereum and XRP have also seen declines, with Ethereum capped below $3,000 and XRP struggling near $1.88. However, Bitcoin ETFs have seen mixed flows, with heavy outflows reported for major products like Fidelity's FBTC and BlackRock's ETHA according to market analysis.

Recent data highlights a divergence in investor behavior, with Bitcoin ETFs recording nearly $358 million in outflows over the past week. XRP ETFs, by contrast, have seen inflows exceed $1 billion, signaling growing interest in altcoin-focused crypto products.

How Markets Reacted

Bitcoin's price has remained below its key moving averages, including the 50-day, 100-day, and 200-day EMAs, which point to a bearish trend. On the daily chart, the RSI has dropped to 36, indicating increasing bearish momentum. If the MACD confirms a sell signal, the price could test support at $80,000.

Ethereum also faces a similar bearish scenario, with its RSI at 41 and a potential sell signal forming on the MACD. If the price breaks above $3,000, it could refocus the short-term trend higher. However, a sustained move above the 50-day EMA at $3,261 is needed to flip the broader outlook.

XRP has been the worst performer among the major tokens, extending its decline for the third consecutive day. The token is currently trading at $1.88, below its 50-day EMA at $2.19. A break below $1.82 could push the price toward $1.61, its April low.

What Analysts Are Watching

Strategic accumulation by institutional investors has kept Bitcoin in the spotlight. For example, Bitcoin treasury firm Strategy added $980 million in Bitcoin over the week ending December 14, marking its second consecutive weekly purchase of nearly $1 billion. The firm now holds over 671,000 BTC, valued at $50.33 billion at an average cost of $74,972 per coin.

However, Strategy's stock (MSTR) continues to lag, down 44% in 2025 despite Bitcoin's 6% decline. This underperformance has eroded most of the firm's premium over net asset value. The firm is now facing regulatory uncertainty, as MSCI is evaluating whether to exclude it from its indices due to its heavy exposure to digital assets.

Investor sentiment remains cautious, with Bitcoin ETFs continuing to see outflows. Fidelity's FBTC alone lost $230 million in a single session, while Ethereum ETFs extended their outflow streak to three days. XRP ETFs, however, remain a bright spot, with inflows hitting $11 million in the latest session.

Risks to the Outlook

Bitcoin's bearish pressure is compounded by broader macroeconomic uncertainty. The token is trading near $86,000, down 3.5% over the past week, reflecting ongoing volatility in the crypto market. Institutional investors are adopting a risk-off approach, and the continued dominance of bearish indicators like the MACD and RSI suggest the downtrend could extend.

The regulatory environment is also a risk, with Strategy facing potential exclusion from MSCI indices. JPMorgan analysts estimate this could trigger up to $8.8 billion in outflows if other index providers follow suit. The firm has pushed back against the proposal, arguing that such a move would undermine U.S. pro-crypto policies and harm national security.

For Bitcoin to reverse its downward trajectory, it must break above the descending trendline and the 50-day EMA. Until then, bulls remain on the back foot. Meanwhile, Ethereum and XRP face similar hurdles, with their technical indicators and EMA trends reinforcing a cautious outlook according to market analysis.

For now, the market is bracing for more volatility as investors navigate a landscape of regulatory uncertainty, macroeconomic risks, and extreme bearish sentiment. Whether Bitcoin can maintain its outperformance over other crypto sectors will depend on its ability to reclaim key technical levels and attract renewed institutional demand.