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Bitcoin hovered near the lower end of its recent trading range as investor caution toward risk assets persisted, even as strong inflows into U.S. spot Bitcoin ETFs provided some support amid uncertainty over the Federal Reserve’s next policy moves.
Bitcoin has remained range-bound between $85,000 and $95,000 over the past month following October’s broader crypto market sell-off. In the last two days, the cryptocurrency dipped below the key $90,000 level, touching a low of $89,257 on December 11. At the time of writing, Bitcoin was trading around $90,581, down nearly 2% in 24 hours, as markets digested the Fed’s latest interest rate decision.
Federal Reserve Chairman Jerome Powell said the central bank is
“well positioned to wait and see how the economy evolves,” indicating a slower pace of rate cuts ahead.
This cautious tone added pressure to risk assets, including cryptocurrencies, as traders reassessed liquidity expectations.
Despite price weakness, institutional demand showed resilience. U.S. spot Bitcoin ETFs recorded a net inflow of $224 million, led by $193 million into BlackRock’s iShares Bitcoin Trust, its strongest daily inflow in 30 days. Adding to the bullish signals, Strategy purchased 10,624 BTC worth $962.7 million, marking its largest acquisition since July.
Crypto analyst Ali highlighted critical Bitcoin levels using the MVRV extreme deviation pricing bands. While Bitcoin has rebounded from its November low of $80,524, a downside move could see support near $76,000, followed by a deeper level around $53,000. On the upside, resistance stands at $99,000 and $122,000, making these zones pivotal for the next trend direction.
On chain data from Glassnode shows that major holders now control 5.94 million BTC, representing 29.8% of the circulating supply. Public companies hold 1.07 million BTC, governments 0.62 million BTC, U.S. spot ETFs 1.31 million BTC, while exchanges account for 2.94 million BTC, underlining the increasing role of institutions in the market.
