BTC (Bitcoin) increased by 1.23% in the last 24 hours

Gate News Bot Message, December 31st, according to CoinMarketCap data, as of press time, BTC (Bitcoin) is currently priced at $88,390.92, up 1.23% in the past 24 hours, with a high of $89,459.43 and a low of $86,411.80. The 24-hour trading volume reached $34.949 billion. The current market capitalization is approximately $1.77 trillion, an increase of $21.424 billion from yesterday.

Bitcoin is an innovative payment network and a new form of currency. Bitcoin operates using peer-to-peer technology without the need for a central authority or bank; transaction management and issuance are collectively handled by the network. Bitcoin is open-source, with a transparent design; no one can own or control Bitcoin, and everyone can participate. Through many unique features, Bitcoin enables exciting applications that were previously impossible with traditional payment systems.

Important Recent News on BTC:

1️⃣ Year-End Liquidity Dry-Up and Sentiment Deterioration Limit Upside Potential

In Q4, Bitcoin has declined approximately 22%, and the anticipated “Christmas rally” did not materialize. Year-end trading is light, coupled with insufficient liquidity, leading to a clear decline in risk appetite among investors. Spot ETF funds have outflows for the seventh consecutive trading day, and CME Bitcoin futures open interest has fallen to an 18-month low. After options expiration on December 26th, open interest decreased by about 50%, with funds generally entering a wait-and-see mode. During the year-end period, US trading hours became a concentrated sell-off window, with profit-taking pressure significantly increasing, causing prices to repeatedly attempt to recover key levels but face selling pressure. From a macro perspective, Bitcoin’s performance resembles that of high-beta risk assets, and without broad risk sentiment support, it is difficult to sustain an upward trend.

2️⃣ Technical Resistance at Key Levels and Rising Leverage Risks

Bitcoin faces significant resistance at around $94,000, with continued oscillation below $90,000 since mid-December. A breakdown of this support could signal the need for a deeper correction. Meanwhile, the derivatives market shows signs of risk accumulation, with leverage trading volumes for Bitcoin and Ethereum continuing to expand, and futures open interest remaining high. Funding rates staying positive indicate that longs need to pay ongoing costs to maintain their positions; if the rally fails to continue upward, forced liquidations or whale selling could intensify downward pressure. The short-term outlook is defensive, with the options skew indicator continuing to decline, reflecting increased demand for downside protection among traders.

3️⃣ Diverging Institutional Attitudes and Corporate Reserves Remain Resilient

US Bitcoin spot ETFs experienced a net outflow of about $5.5 billion at year-end, setting a new record, primarily due to hedge funds closing positions after declining basis trading yields, rather than a long-term bearish signal. The ETF has only seen a 9% decrease from its October high, indicating that long-term institutional confidence remains. Meanwhile, corporate Bitcoin holdings remain firm; Metaplanet bought approximately 4279 BTC for about 69.855 billion yen in Q4, with a total holding of 35,102 BTC and an annual return of 568.2%. Several US-listed companies, including Mogo (renamed Orion Digital), SRx Health Solutions, and others, continue or have increased their Bitcoin holdings, with some explicitly stating plans to add more, reflecting institutional confidence in Bitcoin’s long-term value.

4️⃣ Geopolitical Uncertainty and Macro Risk Appetite Suppress Markets

Changes in geopolitical situations impact market sentiment. The potential deployment of troops by the US in Ukraine is a key geopolitical variable, and increased uncertainty in negotiations may accelerate capital flows between safe-haven assets and risk assets. Macro-level yield fluctuations and dollar volatility make investors prefer capital preservation, benefiting traditional safe-haven assets like gold, while putting pressure on speculative assets like Bitcoin. Meanwhile, precious metals such as gold and silver have hit new highs due to central bank purchases, rate cut expectations, and geopolitical uncertainties. Silver’s volatility has surpassed Bitcoin’s, further reflecting rising risk aversion.

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