Bitcoin News Today: Bitcoin Bounces Near $87K on ETF Inflows, Fed Caution Lingers

Bitcoin Price Analysis: Rebound and Institutional Trends

Bitcoin's price has seen a recent rebound, trading near $87,000 on December 18, 2025, after a week of volatility and uncertainty. The cryptocurrency faced a significant correction from its recent high of nearly $93,000, pulling back to around $85,000 earlier in the week before stabilizing. This bounce has been partially supported by a renewed surge in inflows into U.S.-listed spot Bitcoin ETFs, which added over $457 million in a single day on Wednesday, marking the largest inflow in a month.

The price action reflects a broader tug-of-war between institutional buying interest and macroeconomic headwinds. The Federal Reserve's recent rate cut provided some optimism, but forward guidance remained cautious, tempering expectations for aggressive monetary easing in 2026. Meanwhile, Bitcoin's price remains in a tight trading range, with strong selling pressure above $95,000 and support around $81,000.

Institutional demand has shown early signs of recovery, with ETF inflows offering a crucial counterbalance to selling pressure. According to SoSoValue data, these inflows marked a significant reversal after two days of outflows, signaling renewed confidence in Bitcoin as an institutional asset class. Analysts believe that sustained inflows could help Bitcoin reclaim key resistance levels and push higher in the coming weeks.

Why the Standoff Happened

The recent pullback was driven by a combination of factors. ETF outflows had previously weighed on Bitcoin, with a $277 million outflow on December 16 adding to the uncertainty. Institutional investors have been rebalancing their portfolios, contributing to sharp corrections as Bitcoin enters price discovery mode. The market has also been affected by macroeconomic concerns, including the Fed's signaling of limited rate cuts and broader uncertainty in tech and AI sectors, which have dragged on risk appetite.

Analysts at Copper and Glassnode note that Bitcoin's behavior has evolved into a "cost-basis returns cycle" since the launch of spot ETFs in January 2024. This pattern sees Bitcoin break all-time highs, correct sharply to the ETF cost basis, and then rally more than 60% over the next 180 days.

The latest reset suggests a similar trajectory, though fading ETF inflows, liquidity constraints, and thin positioning mean support levels remain vulnerable.

What Analysts Are Watching

Several key levels are now in focus for Bitcoin as it consolidates near $87,000. On the downside, the $85,500 level has become a critical support zone, with further weakness potentially opening the door to the $80,000 psychological level. On the upside, a clean close above $94,000 to $95,000 is seen as necessary to reestablish bullish momentum and reduce overhead selling pressure.

Institutional demand remains a key variable. The recent inflows into Bitcoin ETFs have helped cushion the downside, but analysts stress that a sustained recovery requires a broader shift in macroeconomic sentiment. The Fed's upcoming inflation data, expected later this week, will be closely watched for any clues about the central bank's next move. A more dovish tone could provide a much-needed boost to risk assets, including Bitcoin.

The XRP ETF market is also showing strong institutional demand. The US Spot XRP ETF surpassed $1 billion in net inflows since its launch, with $10.89 million added on December 16 alone. This trend highlights a broader shift in institutional appetite toward regulated altcoin exposure, even as Bitcoin faces headwinds according to market analysis.

Risks to the Outlook

Despite the recent stabilization, several risks remain on the table. The Fed's cautious stance and limited rate-cut projections suggest that Bitcoin's rally may remain constrained in the near term. Additionally, ETF outflows could reignite, particularly if macroeconomic conditions deteriorate or Bitcoin fails to generate a clear breakout above key resistance levels.

The market is also vulnerable to broader risk-off sentiment, as demonstrated by the recent sell-off in tech stocks and AI-related assets. Bitcoin's high-beta nature makes it susceptible to shifts in broader market sentiment, particularly in a thin and liquidity-constrained environment. Analysts at Glassnode highlight that Bitcoin is currently "anchored" within a range, with weak conviction and active selling from long-term holders potentially limiting upside potential.

What This Means for Investors

For investors, the current environment calls for caution and strategic positioning. The Bitcoin price has seen not yet broken out of a rangebound pattern, and volatility remains elevated. Short-term traders are monitoring key levels, with the $85,500–$90,000 range expected to remain the battleground for the coming weeks. Institutional investors are adopting a more selective approach, with ETFs and structured products playing a growing role in exposure management.

Longer-term investors, however, remain optimistic. Standard Chartered has updated its forecasts, now expecting Bitcoin to reach $150,000 by the end of 2026 and $500,000 by 2030. This view is supported by market analysis of the continued institutionalization of the market, with ETFs and regulated financial infrastructure becoming key drivers of demand.