Bitcoin News Today: Bitcoin Slumps Below $90K as ETF Flows Turn Bearish and Options Loom

Bitcoin (CRYPTO: BTC) faces renewed uncertainty as it fluctuates below $90,000 after briefly testing the level earlier this week. The digital currency's failure to hold above key resistance levels signals growing market caution, with traders bracing for volatility amid a record $28.5 billion in options expiries on Deribit. Institutional demand has also waned, with US spot Bitcoin ETFs shifting from net accumulation to selling, raising concerns about the sustainability of a recovery.

Meanwhile, Shiba Inu (CRYPTO: SHIB) remains in a consolidation phase following a prolonged period of weakness. Recent price action suggests that sellers are losing momentum, hinting at a potential breakout or reversal if buyers gain control. The token's stability contrasts with the broader market's volatility, making it an attractive option for investors seeking less erratic exposure according to market analysis.

Ethereum (CRYPTO: ETH) stands at a critical juncture as it approaches a $6 billion options expiry on Dec. 26. The bearish bias is evident, with traders increasingly protecting against downside risk. While bulls had anticipated a year-end price near $4,000, the current price hovering around $2,900 indicates that bears are maintaining control unless a strong reversal occurs.

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Market Forces and Volatility

Bitcoin's recent inability to hold above $90,000 reflects broader structural fatigue in the market. Derivatives positioning has shifted to a defensive stance, with traders prioritizing hedging over speculative bets. Deribit's $85,000 put options cluster and the $96,000 "max pain" level suggest a gravitational pull toward the lower end of the trading range. On-chain demand has also weakened, slipping below its long-term trend since early October, which historically marks inflection points in Bitcoin cycles according to technical analysis.

Ethereum's price underperformance is compounded by whale activity. A major investor recently purchased $1.67 billion worth of ETH, signaling long-term bullish sentiment. However, this buying was counterbalanced by Arthur Hayes' continued selling spree, including a $2 million ETH transaction today. The mixed signals from whale behavior underscore the uncertainty gripping the market.

Analysts Watch for Cautious Moves

Analysts are closely monitoring Bitcoin's performance as it enters what could be a consolidation or a deeper correction. Institutional flows and on-chain data are key indicators. According to FxPro's Alex Kuptsikevich, the recent rallies reflect exhaustion rather than renewed conviction. If demand stabilizes, a recovery could be on the horizon, but for now, the near-term outlook remains bearish.

Ethereum's technical outlook also appears cautious. The token is forming a bearish flag pattern and sits below its 50-day and 200-day moving averages. The bearish crossover in November, combined with the broader market's waning sentiment, increases the risk of further declines. Analysts highlight $2,622 as the first target and warn that a drop below that level could push the price toward $2,000.

Outlook and Investor Considerations

Bitcoin's potential to reclaim $90,000 remains in question as the market awaits clarity from options expiries and ETF flows. The coming weeks will be critical, with traders watching for any signs of a genuine trend reversal. In the meantime, the market remains in a tug-of-war between bearish pressure and speculative optimism.

Ethereum investors are advised to maintain caution as the token approaches its expiry. While whale accumulation provides some optimism, the broader market's weakness and bearish positioning suggest that downside risks remain elevated. Investors should prepare for further volatility, especially if the price fails to break above $3,200.

Bitcoin's broader market impact is also evident as it struggles to rally above key levels. The total crypto market capitalization has remained around $3 trillion, with no major tokens breaking decisively higher. The hesitation to push above resistance levels reflects the market's cautious stance, with traders reluctant to commit to bullish bets without clearer signals.