After briefly surging above $90,000 following the Christmas weekend, Bitcoin’s (BTC) price has dropped to the $87,000 – $88,000 range as the alpha crypto asset failed to hold onto gains. This move has set the tone for the broader crypto market this week.
Meanwhile, Asian equities took a breather after a week-long rally, and investors marked down U.S. tech stocks into the year-end. A softer equity outlook came alongside another bout in the metals market, as gold and silver experienced a sharp pullback from fresh all-time highs, with traders booking profits and liquidity thinning after the holiday weekend.
Bitcoin Crosses $90,000 But Corrects to $87,000 as Liquidity Thins Post-Christmas
According to data from blockchain analytics firm Santiment, Bitcoin’s late-December bounceback coincided with negative sentiment across social channels, where extreme fear, uncertainty, and doubt (FUD) dominated discussions. This behavior typically prompts tactical short-term moves, as seen during previous market cycles. However, the latest rally stalled as the fear factor eased to neutral levels and buying interest evaporated, resulting in price consolidation rather than a sustained uptrend.
Ether (ETH), the second-largest cryptocurrency by market capitalization, mirrored this delayed sentiment improvement, even briefly outperforming BTC, yet optimism faded without its price breaking key resistance levels. ETH’s price chart showed sentiment stabilizing at neutral levels, indicating neither bullish nor bearish sentiment, which suggests indecision among traders. Typically, 70% of such fear-driven bouncebacks fail to sustain without volume confirmation, underscoring the lack of conviction needed for an all-out rally.
Bitcoin briefly surpassed the $90,000 mark on December 29, even hitting an intraday high of approximately $90,299 during early Asian trading sessions. This surge reflected fleeting optimism, largely driven by spot buying and limited short liquidations in thinner markets. However, the rally was short-lived, as selling pressure emerged when the price approached a higher level, leading to a correction toward $86,717. However, it managed to recover modestly to reclaim territory above $87,000.
The apex crypto lingers below $90,000 because bearish resolve among sellers has kept significant breakouts in check. This outlook was demonstrated by digital asset investment products, which recorded substantial outflows last week.
Data from CoinShares show that approximately $446 million in capital exited the crypto market, with BTC bearing the brunt, as it experienced net redemptions of $443 million, while ETH saw outflows of $59.5 million. However, on Monday, institutional players like Binance, BlackRock, Coinbase, Fidelity, and Wintermute collectively sold $3.5 billion in under 45 minutes – a key driver behind the price correction.
DeFi research “CryptoNobler” designated this as a “coordinated manipulation” in an X post.
On the other hand, XRP registered its strongest daily inflows at $70.2 million, while Solana (SOL) drew $7.5 million – but market observers remain cautious in their overall outlook.
QCP Capital analysts highlighted in a recent research note that Bitcoin’s modest upward movement occurred against a backdrop of low holiday week trading activity. Support for the price stemmed primarily from spot and perpetual market trading, rather than widespread forced liquidations of short positions. Post-expiry positioning reveals persistently high perpetual funding rates, indicating potential for upward gamma exposure should BTC hold above roughly $94,000.
Meanwhile, downside price protections have diminished, as sharply reduced open interest points to limited conviction among traders. However, the analysts suggest that the market’s direction may hinge on a resurgence of liquidity as normal trading resumes after January 1, 2026. Nevertheless, the current environment signals a market-wide pause to take a breath after a tumultuous year.
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U.S. and Asian Stocks, and Gold and Silver Drop as Investors Take Profits
Whereas macro investors are focused on the U.S. economic policy path. Traders have turned their attention to the Federal Reserve’s December meeting minutes release, due today, which often renews interest rate expectations when market positionings are crowded. The broader picture still reflects a strong year for risk assets, despite the wobble experienced in the latter half of 2025.
The MSCI All Country World Index has climbed 21% this year, while a broad measure of Asian stocks has rallied almost 26% yearly.
MSCI’s gauge of Asia Pacific shares dipped 0.1% in early trading, while the S&P 500 Futures edged lower after the U.S. benchmark fell 0.3% on Monday. The Nasdaq 100 dropped 0.5% in the same session, with Tesla (TSLA), Nvidia (NVDA), and Meta (META) among the biggest losers.
No other market has been the victim of volatility as much as precious metals, with the latest moves showing how quickly crowded trades can unwind. Silver’s spot price fell nearly 5% on Monday after hitting an all-time high of $75.18 an ounce earlier in the day, while gold eased after reaching a peak of $4,549 per ounce on Friday, 26 December, as profit-taking dominated trades.
