Bitcoin News Today: Bitcoin Tests $90K as Leverage Builds Ahead of Key Breakout Threshold

Bitcoin tested the $90,000 level on December 22, 2025, as leverage continued to build in the market. Analysts noted that the price could surge further if it breaks above the $92,000–$94,000 threshold, potentially pushing toward $98,000. However, on-chain metrics like On-Balance Volume (OBV) remain a critical factor in determining the sustainability of such a rally.

The cryptocurrency's current rally faces a key test in spot demand, as increased leverage may not translate into durable price gains without solid buying support. Technical frameworks suggest a $90,000 breakout could open a path to $98,000, but a lack of confirmation from fundamental indicators could trigger a sharp correction.

Longer-term outlooks remain wide-ranging, with some models forecasting Bitcoin could reach $1 million by 2030 and even $21 million by 2046. Yet, the market is historically prone to underperforming ambitious projections within a calendar year due to volatility, leverage washouts, and repeated de-risking events.

Why the Standoff Happens

The standoff at $90,000 is not merely a technical level but a reflection of broader market dynamics. Bitcoin's price action is being closely monitored for signs of institutional and retail participation, which have been mixed in recent weeks. While spot demand is under scrutiny, leverage from futures and options has also been building. This divergence between leverage and spot buying is a key risk to the bullish case.

Historically, major bull cycles in Bitcoin have been followed by sharp drawdowns. For example, the 2017 and 2021 peaks led to corrections of roughly -84% and -77%, respectively according to analysis. A hypothetical -70% drop from a future peak could bring Bitcoin down to the $35,000–$40,000 range. This context is vital for allocators who must assume mean reversion is always a possibility, regardless of the long-term bull case.

What Analysts Are Watching

Analysts are focusing on specific levels and on-chain indicators to gauge the next move. A $90,000 breakout could trigger a rally toward $98,000 or even $100,000. However, the Relative Strength Index remains a key metric to watch. At 48, the RSI is approaching the 50 midline, which could signal a shift in momentum.

Ethereum, currently hovering around $3,041–$3,045, is also under scrutiny. ETH's performance is closely tied to Bitcoin's price action. If Bitcoin fails to break above $90,000 and retreats toward the mid-$80,000s, correlations between BTC and other altcoins are expected to tighten, which could limit ETH's upside.

Risks to the Outlook

While optimism exists among some institutional players, the market remains volatile and prone to sharp corrections. Several institutions and high-profile figures have set 2025 price targets in the $200,000–$250,000 range, yet Bitcoin has only reached $126,000 at its peak. This discrepancy highlights the challenge of meeting ambitious targets in a short timeframe, even within a long-term bullish trend.

Bitcoin ETFs have recorded outflows in recent weeks, signaling waning institutional interest. Ethereum ETFs have also seen sustained outflows, which reflect broader bearish sentiment. In contrast, XRP ETFs continue to see inflows, indicating divergent demand patterns among major cryptocurrencies.

What This Means for Investors

For investors, the current environment underscores the importance of careful position sizing and risk management. The potential for rapid mean reversion and deep drawdowns remains a key risk, especially for those with large or leveraged positions. While longer-term targets remain in play, the immediate focus is on key levels and on-chain flow metrics that can confirm or refute the bullish case.

KuCoin has emerged as a major player in the altcoin trading ecosystem, with its liquidity and transparency initiatives gaining recognition. The exchange's $2 billion Trust Project, launched in 2025, is designed to strengthen its compliance and security infrastructure, reinforcing its ability to operate in a rapidly evolving regulatory landscape.

BitMine, on the other hand, is expanding its Ethereum holdings and has announced plans to launch its Made-in America Validator Network (MAVAN) in 2026. The company now holds 4.066 million ETH tokens and has total assets exceeding $13.2 billion in crypto and cash. This aggressive growth strategy positions BitMine as a key player in the global Ethereum treasury.

Regulatory Developments

Regulatory developments are also shaping the market environment. The Federal Reserve is seeking input on a new account model that could provide crypto firms with greater access to banking services. However, the proposed payment accounts would not have the same privileges as traditional bank accounts, including access to Fed credit and interest earnings.

The Federal Reserve recently withdrew a 2023 policy statement that effectively barred banks from most crypto activities. This shift comes as regulators begin to dismantle other barriers facing crypto firms, including restrictions on national trust bank charters.

Conclusion

Bitcoin's price action at the $90,000 level is a pivotal moment for the market. A successful breakout could open the door to further gains, but it must be supported by strong spot demand and confirmed by on-chain indicators. Investors should remain cautious, given the historical volatility and potential for deep drawdowns. As the year-end approaches, the focus remains on technical levels, leverage dynamics, and regulatory developments that could influence the trajectory of the market in 2026.