Bitcoin stands at $87,000 amid muted institutional participation
The price of Bitcoin struggled after the psychological level of $90,000 was reduced. Risk asset swings below $87,000 are threatened with bearish extension. If the bears take control, the price of BTC may drop to $85,000.
The holiday season is here, but unlike previous cycles, Bitcoin (BTC) continues to trade in a tight range around $87,000 in bearish conditions.
On Wednesday, BTC fell to $86,411 as the holiday liquidity ebbed and flowed, with bulls unable to consolidate above $88,000.
With Bitcoin's failure to recapture the $90,000 level, a sideways move was tempered by broader market caution, and institutional interest appears to have eased following strong earnings flows in 2025.
Bitcoin slips between ETF exits.
Recent weeks have seen outflows from U.S. spot Bitcoin Exchange Traded Funds (ETFs), a shift consistent with bearish sentiment for BTC and its ETFs from large investors.
According to data from SoSoValue, spot Bitcoin ETFs experienced net inflows of about $189 million on Tuesday, December 23rd.
This brought the negative flow to four consecutive days. This pattern is consistent with broader trends observed in late 2025, with year-end de-risking and portfolio rebalancing expected.
This has contributed to the decline in institutional participation, say market experts.
On-chain analytics firm Glassnode recently highlighted this trend in a comment shared on X (formerly Twitter).
Analysts note that the 30-day simple moving average (SMA) of flows into both Bitcoin and Ethereum ETFs has remained negative since early November.
While total revenue for the year remains high and above $57 billion, recent leaks indicate a halt in institutional appetite.
“This persistence suggests muted participation and partial disengagement from institutional distributors, reinforcing the widespread reduction in liquidity in the crypto market,” the forum said.
The massive outflow coincided with Bitcoin's failure to break above key psychological thresholds at $100,000 and then $90,000.
Short-term pressure currently sees bulls fighting the downside risks around $87,000.
Since early November, the 30D-SMA net flow to both Bitcoin and Ethereum ETFs has turned negative and remains so.
— glassnode (@glassnode) December 23, 2025
Bitcoin Price Outlook: Potential for Further Dips?
From a technical perspective, Bitcoin has faced significant challenges since retreating from the $90,000 mark.
Buyers' attempts to engineer it were thwarted by a price push earlier in the month that sold below $85,000.
A rejection above $88,000 will now see BTC revisit lower support levels. Interestingly, this sees Bitcoin further decouple from gold, with the precious metal exploding to a record high of over $4,500.
The key pointers indicate a downward trend.
The Relative Strength Index (RSI) has dipped below the neutral 50 level, indicating a loss of buying strength.
Similarly, the Moving Average Convergence Divergence (MACD) shows converging lines that indicate a bullish trend. If hot demand fails, BTC may seek support around $85,000 or below.
