BTC (Bitcoin) increased by 1.62% in the past 24 hours, currently at $89,162.45

Gate News Bot Message, December 29th, according to CoinMarketCap data, as of press time, BTC (Bitcoin) is trading at $89,162.45, up 1.62% in the past 24 hours, with a high of $90,501.93 and a low of $86,411.80. The 24-hour trading volume reached $20.098 billion. The current market capitalization is approximately $1.78 trillion, an increase of $28.329 billion from yesterday.

Important recent news about BTC:

1️⃣ Institutional allocation demand continues to support but liquidity weakens Since the US Bitcoin ETP hit a record high of $62 billion in October, net inflows have only decreased by 9%, indicating relative stability in institutional allocations. However, on-chain data shows the opposite signal—Bitcoin ETF net outflows of nearly $1 billion over the past two weeks, with market inflows into cryptocurrencies continuing to decline. The current rebound may be mainly driven by leverage rather than spot demand, which means there is still a risk of further price decline.

2️⃣ Divergence between national strategic reserves and corporate allocation motivation El Salvador has increased its holdings by 1,511 BTC since early 2025. Japanese publicly listed company KLab has launched a “Dual Gold Financial Strategy,” allocating about $24 million in a 6:4 ratio of BTC to gold. Meanwhile, Bitcoin treasury company Strategy has established a $2.2 billion cash buffer, prioritizing dividend and debt interest payments over further BTC accumulation, reflecting a shift from an offensive to a defensive treasury strategy. Overall allocation growth is expected to slow.

3️⃣ Disconnection from traditional safe-haven asset correlation sparks controversy Based on historical correlation, Bitcoin’s current price should be in the $4,500–$6,900 range, but at $87,162, it is significantly “uncoupled.” Similar divergence in correlation occurred when Bitcoin was below $1,000, eventually leading to a tenfold increase. However, market opinions vary—gold and silver have gained 4x and 8x the S&P 500 this year, respectively. Some investment advisors are calling to “shift from Bitcoin to gold,” while others believe Bitcoin can continue rising without waiting for precious metals to correct. Whether the correlation has been structurally broken remains to be seen over time.

4️⃣ On-chain loss data and market sentiment indicate bottom characteristics Realized losses amount to $300 million daily. Although Bitcoin price has stabilized above the true market mean (around $81,000), high-position buyers are continuously selling due to dissatisfaction with time costs, and loss-selling behavior has not significantly decreased. Currently, Bitcoin’s price is about 12% below short-term holder cost basis. On-chain data shows whales are continuously buying during the price decline, while retail investors continue the “buy high, sell low” pattern. This divergence in participant behavior often signals market bottom features.

5️⃣ Regulatory environment optimization lays the foundation for long-term development The phase of regulatory divergence between the US SEC and CFTC has ended. Both have shifted from “jurisdiction disputes” to collaborative efforts to regulate cryptocurrencies like Bitcoin. The SEC has established a “token classification system” and promoted innovation exemption mechanisms, while the CFTC is accelerating rule clarification through the “Crypto Sprint.” This dual-track system innovation and market expansion are expected to dominate by 2026, providing institutional support for Bitcoin’s long-term role as a hedge against currency devaluation.

This message is not investment advice; please be aware of market volatility risks.