Bitcoin fell towards the $87,000 level on Wednesday after another failed attempt to reclaim levels above $90,000, as weak year-end trading conditions and continued outflows from US-listed spot ETFs weighed on sentiment.
The world's largest cryptocurrency was trading down 0.7% at $86,966.6 by 09:19 Saudi time.
Bitcoin under pressure from ETF outflows
Bitcoin struggled to find momentum at the start of Asian trading, continuing the pattern of suppressed price action seen during recent sessions.
The lack of follow-through reflected low liquidity ahead of the Christmas holidays, with many market participants holding back after Bitcoin was repeatedly rejected near the closely watched resistance level of $90,000.
Adding to the pressure were continued outflows from ETFs. Data from cryptocurrency analytics firm SoSoValue showed that US-based Bitcoin spot ETFs saw net outflows of nearly $500 million last week, indicating a decline in institutional demand following strong inflows earlier in the year.
Federal Reserve cut bets remain firm despite strong US GDP in the third quarter
The broader market backdrop was mixed for Bitcoin. US stocks rallied overnight, with the S&P 500 hitting a record closing high thanks to strong gains in technology stocks and data showing the US economy grew at a robust annual rate of 4.3% in the third quarter.
Meanwhile, traditional safe havens outperformed, with gold and silver rising to record highs as investors sought protection amid geopolitical uncertainty and expectations of more accommodative monetary policy.
Bitcoin, often touted as a hedge against inflation and financial instability, has failed to capitalize on the rise in stocks or precious metals.
However, expectations for US monetary easing remained generally supportive. Despite strong GDP data, markets continued to price in a Federal Reserve interest rate cut in 2026, betting that inflationary pressures would continue to ease over the medium term.
Low interest rates typically support high-risk assets by reducing the opportunity cost of holding non-yielding investments. Earlier this year, Bitcoin surged on hopes of Federal Reserve easing.
Cryptocurrency prices today: Altcoins continue their suppressed movements
Most alternative currencies traded slightly lower, continuing their suppressed movement in recent sessions.
Ethereum, the world's second-largest cryptocurrency, fell 1% to $2,934.92.
XRP, the world's third-largest cryptocurrency, fell 1.6% to $1.85.
Solana and Cardano each fell by 2%, and Polygon declined by 1%.
Among the meme currencies, Dogecoin lost 2.3%, while $TRUMP declined by 1%.
