Bitcoin News Today: Bitcoin Wavers Near $87K as ETF Volatility and Retail Selling Cloud Near-Term Outlook

Bitcoin remains near $87,000, holding steady amid mixed signals from key technical and market indicators. Institutional investors have shown cautious behavior, with Bitcoin ETFs experiencing both large inflows and outflows within a short span. Meanwhile, retail investors are increasing their selling pressure, raising questions about short-term stability.

The cryptocurrency's price has dropped about 23.8% from its peak near $126,000 in October, marking one of its weakest fourth quarters. Analysts are closely monitoring whether Bitcoin will break below $85,000, a key support level that could signal further downside risk. The $73,000 level is seen as the next critical threshold if a significant drop follows.

Amid the uncertainty, several developments are shaping the outlook for 2026. The potential listing of Kraken in an IPO is drawing attention as a possible catalyst for broader institutional participation. Additionally, increased M&A activity in the crypto sector is seen as a sign of consolidation and a shift toward maturity in the industry.

Market Volatility and Institutional Sentiment

Bitcoin ETFs have seen significant swings in the past week, with $457.3 million in inflows on December 17 followed by nearly $460 million in outflows. This volatility highlights the cautious stance taken by large investors as they assess the market's near-term direction. Analysts note that institutional investors are not as active as retail traders, who are increasingly offloading their Bitcoin holdings.

The mixed signals from ETF flows have led to uncertainty about whether Bitcoin will continue its decline or stabilize in the coming weeks. Technical indicators remain split, with some suggesting a potential bounce from current levels, while others warn of a deeper correction if key support levels are breached.

Regulatory Developments and Market Access

In a notable shift, Russia has proposed new rules that could allow limited retail access to cryptocurrencies. Under the draft framework, everyday investors could purchase up to $3,800 in crypto annually, while professional investors would have broader access. This move marks a gradual shift in regulatory approach, with the Bank of Russia aiming to formalize crypto as a financial asset while maintaining strict controls on risk and usage.

The central bank emphasized that cryptocurrencies remain high-risk and could lead to significant losses, urging investors to fully understand the risks before participating. The proposal also prohibits using crypto for domestic transactions, reinforcing its position that the ruble must remain the primary means of exchange within the country.

Outlook for 2026 and Strategic Moves in the Industry

Crypto industry watchers are divided on the future of Bitcoin in 2026. Some believe the current bearish trend is temporary and that the bull market is still in its mid-stage, while others, like Fidelity's Jurrien Timmer, expect a correction down to $65,000 before a potential rebound. The debate centers around macroeconomic factors, including global liquidity and regulatory developments, which could influence Bitcoin's trajectory.

Meanwhile, exchanges such as BTCC and Bybit are making strategic moves to capture market share. BTCC has launched a new flexible savings campaign offering up to 18% APY and unveiled limited edition merchandise to engage its user base according to reports. Bybit, on the other hand, recently captured the top spot in 24-hour trading volume, driven by a surge in NIGHT/USDT trading activity.

Risks to the Outlook

Despite the industry's resilience, risks remain. Bitcoin's price volatility, regulatory uncertainty, and increasing competition in the mining sector could all impact investor sentiment. Companies like BitFuFu and Core Scientific are navigating these challenges, with some focusing on expanding into AI and high-performance computing to diversify their revenue streams.

Cohen & Co and Bullish Inc have also reported strong results in recent quarters, with revenue growth and strategic initiatives in digital assets driving investor optimism. However, both companies caution that regulatory and market conditions could shift quickly, affecting their long-term growth potential.