As of now, Bitcoin trades around $88,454, with intraday swings below $90,000 highlighting a fragile market shaped by profit-taking, weaker institutional flows, and macro-driven risk-off sentiment. The headline: Bitcoin price struggles because crypto holders are selling and ETF inflows have cooled.
Bitcoin markets are fragile and ETF outflows add to downside pressure
- Bitcoin recently hovered near $86,600 amid thin liquidity and uncertainty, after failing to hold above $90,000.
- It briefly dipped below $90K again on December 11 2025, pressured by monetary-policy worries and weak risk appetite.
- Over $350 million exited Bitcoin-linked ETFs in mid-December, signaling investor caution as the crypto market cools.
- The cryptocurrency is down roughly 30 % from its October peak above $126,000, prompting analysts to trim 2026 outlooks.
Bitcoin is struggling below $90,000 in December 2025 mainly due to three forces: selling by long-term holders locking in profits, slowing and in some weeks negative ETF flows reflecting cautious institutional demand, and wider macro volatility that’s driving investors out of risk assets.
Why Bitcoin Price Struggles Under $90,000
Bitcoin has slid from record highs above $126,000 in 2025 to the mid-$80K–$90K range due to a mix of macro pressures and crypto-specific selloffs.
Several validated factors have converged:
- Liquidity is thin and price fluctuations are becoming sharper, a sign of investor caution and reduced market depth.
- Macro uncertainty (inflation, interest-rate trajectory, global liquidity contraction) has depressed risk appetite.
- Institutional participation through ETFs has weakened, with outflows and flat growth year-over-year.
From experience following several crypto cycles, these slowdowns almost always start quietly: first volume drops, then ETF flows subside, and only later do prices correct more steeply.
Why Long-Term Holders Are Selling
Data-Backed Selling Pressure
- Mid-cycle holders (3–5 years) sold 32 % of their supply over the last two years, contributing to corrections from $110K to $91K.
- Long-term holders were distributing at 26,000 BTC/day in late 2025, worth tens of billions since mid-year.
- The share of supply held by long-term investors (≥1 year) has declined across cohorts — a clear signal of profit-taking.
Why They’re Exiting
- Profit Realization After Big Rally: Many early holders are taking profits after a decade-long run, which is common near cycle peaks.
- Macro Risk Reduction: Rising bond yields and inflation uncertainty make high-volatility assets harder to hold.
- Market Structure Transfer: Long-term holders often sell into institutional demand, supplying liquidity and distributing coins to new holders.
Notably, some long-term holding supply hit a cyclical low in November – a classic sign that distribution has peaked.
ETF Flows Are Slowing—Here’s Why It Matters
2025 ETF Flow Reality Check
- U.S. spot Bitcoin ETF assets fell from $169.5 B in October to $120.7 B in December.
- Net ETF asset growth for the year was essentially flat, despite large issuance demand.
- ETF outflows exceeded $3.5 billion in November, the largest monthly withdrawal since launch.
ETF demand even dropped below newly mined Bitcoin supply for the first time in months — a structural warning sign.
Why Flows Are Drying Up
- Tactical portfolio rebalancing by institutions reacting to macro conditions.
- Rising Treasury yields and safer returns competing with crypto.
- Asset managers redeeming ETF shares — which forces selling of spot BTC.
I’ve seen this in previous cycles: when ETF flows flatten, price momentum fades quickly because that institutional bid was the engine of upside volatility.
Macro Drivers: How Global Markets Are Hitting Bitcoin
1. Monetary Policy
The Fed’s policy trajectory and inflation concerns have cooled risk appetite across markets.
2. Liquidity Shocks
Global liquidity fears — including currency carry-trade unwinds — are reducing speculation and driving risk-off behavior.
3. Tech & Equities Sell-Off
Synchronized pressure on equities and crypto often points to institutional deleveraging.
Bitcoin’s increasing correlation with equities post-ETF adoption, documented in academic research, explains why macro shocks now hit crypto harder than before.
Market Structure Pressures: Liquidations & Thin Liquidity
- Over $514 million in crypto liquidations and high leverage levels amplified the downside.
- Loss of order-book depth means smaller sell orders now move the market more aggressively.
This thin-liquidity environment explains the rapid intraday drops under $90K — the “air pocket” phenomenon I’ve seen repeatedly in crypto crashes.
Are Crypto Holders Selling for Good—or Just Taking Profits?
Much of the selling pressure appears cyclical, not structural:
- Analysts say ETF outflows reflect rebalancing rather than abandonment.
- Some whale cohorts have resumed accumulation, adding BTC around perceived value levels near $80K–$82K.
- Whales net-purchased over 47,000 BTC in December, reversing prior selling phases.
That mix — institutional caution, retail sell-offs, and selective whale buying — is typical late-cycle behavior, not necessarily a terminal downturn.
Future Outlook and Key Levels
Short-Term Risks
- Continued ETF outflows
- Macro tightening or liquidity shocks
- Renewed selling by large holders
Possible Fundamental Supports
- Accumulation around $80K by whales and institutions
- Improved ETF inflow cycles
- Resilient long-term conviction holders
Forward-looking analysts now forecast a broad trading band — bullish potential up to ~$143K in 2026 and bearish scenarios near $78K.
Conclusion: What the Current Correction Really Means
The truth is simple but important: Bitcoin price struggles below $90,000 because the market is normalizing after an explosive bull phase. Profit-taking from long-term holders, cooling ETF demand, and macro risk aversion have converged — a pattern I’ve witnessed multiple times in crypto’s short history.
From an editorial perspective, the data doesn’t suggest structural collapse; it points to a maturing asset in a volatile repricing phase. Over the next months, expect volatility, cautious institutional flows, and opportunistic accumulation — the hallmarks of every major Bitcoin transition before its next major move.
