Bitcoin’s brief spike above $90,300 followed by a pullback toward about $89,600 reflects a tug-of-war between short-squeeze mechanics in the derivatives market, macro rotation into gold and silver amid risk-off sentiment, and vocal bearish commentary from critics like Peter Schiff — who argue Bitcoin’s recent performance relative to precious metals highlights structural weaknesses. These factors combined with subdued year-end liquidity and trading range pressures have kept BTC in a tight band just under the psychologically significant $90,000 price level.
Bitcoin’s Price Context in Late December 2025
As of December 29, 2025, Bitcoin (BTC) remained in a tight trading range between roughly $85,000 and $90,000, despite a powerful rally earlier in 2025 that saw the asset breach and retreat from much higher levels. Current market data confirm BTC’s intraday high near $90,325 before pulling back and stabilising around $89,660 on major exchanges.
The Psychological $90K Level
Bitcoin’s ability to crest above $90,000 — even briefly — reflects continued underlying demand and market attention, but the failure to sustain that level suggests underlying resistance, with several factors constraining upside momentum through year-end.
2025 Highs vs. Current Price
Bitcoin’s most impressive run of the year occurred in early October when it exceeded $126,000. Since then, the price has pulled back significantly, consolidating through November and December — a usual pattern after parabolic rallies as traders lock in gains and rebalance positions.
Heavy Short Squeeze Explained
A short squeeze occurs when traders who have bet on price declines (short positions) are forced to cover by buying back the asset as prices rise — feeding further upward pressure.
Short Positions at Key Levels
Data from derivatives platforms show clusters of leveraged short positions near resistance levels around $90,000–$90,600. When price pokes above this range, some shorts are liquidated — triggering buy orders that lift price temporarily. But if the squeeze lacks broader spot demand, the effect is short-lived.
Gamma and Options Dynamics
Part of Bitcoin’s current range can be attributed to options market mechanics, where dealers hedge exposures and create artificial support and resistance levels — notably between about $85,000 (put support) and $90,000 (call resistance). These forces can pin BTC’s price and cause momentary spikes, such as the brief rise to $90,300, without sustaining a breakout.
This means the short squeeze that pushed BTC above $90K in late December was partly technical and mechanical rather than driven by fresh fundamental demand. The squeeze engineered upside momentum briefly before the structural range reasserted itself.
Macro Rotation — Gold and Silver Attracting Capital
One reason Bitcoin’s breakout lacked conviction is capital rotation into precious metals, especially gold and silver.
Record Precious Metals Performance
Precious metals saw exceptional rallies throughout 2025, with silver trading significantly higher year-to-date and gold setting multiple highs. Some analysts attribute this to investors seeking real assets amid inflation concerns and monetary policy uncertainty.
Schiff’s Relative Value Argument
Economist and gold bug Peter Schiff has argued that Bitcoin’s failure to track higher even when gold and silver rally suggests Bitcoin’s narrative as “digital gold” is overstated. In a recent set of posts, Schiff contended that if Bitcoin cannot rally when both traditional stores of value and risk assets gain, that implies a structural weakness rather than diversified asset behaviour.
This sentiment has resonated with some participants, leading to flows — at least in narrative — toward precious metals rather than risk-oriented crypto assets during certain market conditions.
Schiff’s Warnings and Their Market Impact
Bitcoin “Slow Death” Commentary
In December 2025, Schiff warned that Bitcoin might be facing a “slow death” if it fails to rise alongside tech stocks and precious metals, suggesting current performance was insufficient for a sustained rally. His core claim was that Bitcoin’s lack of correlation with these assets indicates structural issues rather than cyclical shifts.
Sell Bitcoin, Buy Metals
Schiff and other critics have urged investors to “dump Bitcoin and buy silver or gold,” citing precious metals’ superior returns year-to-date and Bitcoin’s relative stagnation. These opinions, while controversial among crypto proponents, have reinforced narrative-driven selling or profit-taking at higher levels.
His bearish commentary doesn’t directly move markets mechanically, but when repeated across social channels and combined with macro uncertainty, it can amplify sentiment shifts — especially near key technical thresholds like $90,000.
Macro and Technical Market Drivers
Liquidity Dynamics
Holiday trading in late December traditionally sees thin liquidity, meaning that price swings—both up and down—can be exaggerated by even modest order flows. When buyers step back and liquidity dries up, known resistance levels such as $90,000 can be tougher to break sustainably.
Short-Term vs. Long-Term Structures
Despite the short-term volatility, longer-term charts show Bitcoin oscillating within a band rather than collapsing, implying range-bound consolidation rather than outright capitulation. Should Bitcoin break above the $90,000 ceiling with volume and follow-through, that could signal renewed bull momentum.
Price Psychology and Retail Sentiment
Psychological Resistance at $90K
Traders view $90,000 as a major psychological milestone — akin to other round figure levels ($50K, $100K) — where profit-taking and short positioning cluster. This makes breakouts around these levels prone to brief spikes followed by quick retracements.
Retail Division on Year-End Direction
Polls among retail traders show a division in expectations: some foresee renewed upside into year-end and early 2026, while others anticipate deeper pullbacks back toward $80,000 if resistance repeatedly holds.
This split reflects broader uncertainty about whether Bitcoin’s 2025 rally has lasting legs amid macroeconomic and market structure factors.
Conclusion — Why BTC Surged and Then Retraced
Bitcoin’s brief run to about $90,300 before pulling back to roughly $89,600 is a story of short-term technical dynamics, broader asset rotation, and lingering skepticism from influential market voices like Peter Schiff.
- The short squeeze and derivatives positioning momentarily forced BTC higher, only to meet heavy resistance and structural range limits.
- Macro rotation into gold and silver has attracted capital on risk-off narratives, weakening the bid for Bitcoin at psychological thresholds.
- Critics like Schiff have amplified bearish sentiment through repeated warnings about Bitcoin’s relative performance and long-term prospects.
- Holiday liquidity dynamics and resistance at $90,000 have kept the market in a tight, high-stakes range rather than triggering clear breakout or breakdown momentum.
For traders, this means 2025’s Christmas rally and pullback phase is less about singular news events and more about technical pressures, macro cross-asset flows, and narrative tension. Whether Bitcoin can finally break above the $90,000 ceiling decisively will depend on liquidity conditions in early 2026, broader institutional demand, and how macro signals such as interest rates and inflation data evolve.
Editorial Opinion
From my experience covering crypto cycles over the past decade — including several boom-and-bust periods — this kind of behaviour near major psychological levels is textbook: markets bolt higher when short covers intensify, then retreat when fresh demand fails to materialize. Right now, Bitcoin’s narrative is wrestling with macro uncertainty, contrasting asset performance (especially precious metals), and deep-seated skepticism from influential critics like Schiff. Until clear directional conviction returns — supported by volume and fundamental catalysts — range-bound price action around $90K is likely to continue.
