Bitcoin slipped 0.55% over the past 24 hours, settling at $87,676—slightly underperforming the broader crypto market, which declined by 0.46%. This modest pullback isn’t just a routine correction; it’s the result of converging headwinds: persistent technical resistance just shy of the $90,000 mark, renewed regulatory anxiety surrounding the GENIUS Act, and a resurgence of outflows from U.S. spot Bitcoin ETFs. Compounding the sensitivity of price action, holiday-period liquidity remains thin, magnifying even minor shifts in sentiment.
At the heart of the technical picture is Bitcoin’s repeated failure to break above $90,000. The psychological and structural significance of this level is reinforced by its proximity to the 23.6% Fibonacci retracement at $92,202 and the 30-day simple moving average hovering at $89,013. The Relative Strength Index (RSI) now sits at 44.62—firmly in neutral territory but trending bearish, signaling waning momentum. With 24-hour trading volume down 5.1% to $33.6 billion, market participation remains subdued, tightening the $85,000–$90,000 range into a zone of indecision. Traders are now watching for a decisive daily close above $90,718—the 38.2% Fibonacci level—as a potential trigger for renewed bullish conviction.
Simultaneously, regulatory uncertainty has crept back into the narrative. Fresh scrutiny of the GENIUS Act, particularly concerns voiced by Representative Warren Davidson about its potential to enable Central Bank Digital Currency (CBDC) surveillance, has reignited fears among privacy-conscious investors. With the Senate markup of the complementary CLARITY Act scheduled for January 15, the policy landscape remains unsettled. These developments appear to be weighing on institutional participation: after recording $335 million in inflows on December 29, spot Bitcoin ETFs have since posted net outflows, underscoring how closely traditional finance (TradFi) flows now track Bitcoin’s price—correlation has risen to 0.87.
Yet the institutional story isn’t uniformly bearish. Corporate treasuries continue to accumulate Bitcoin at scale—Tether alone purchased 8,889 BTC ($784 million) in Q4 2025, while public companies like Strategy added a staggering $22 billion in Bitcoin to their balance sheets this year. This creates a structural floor beneath the market. However, short-term sentiment is being tempered by ETF redemptions and weak U.S. retail demand, evidenced by the Coinbase Premium Index dipping to -0.09.
For now, Bitcoin appears to be in a holding pattern. Long-term holders have significantly reduced their selling pressure—only 674,000 BTC were distributed in Q4, a notable slowdown from previous quarters. But without a catalyst to propel price past the $90,000 barrier, consolidation is likely to persist. The immediate focus shifts to whether BTC can defend the $85,000 support level, which aligns with the 200-day exponential moving average. All eyes will be on the January 15 CLARITY Act markup—a potential inflection point that could either ease policy fears or deepen market caution.
