Bitcoin Nears $89,000 Amid Thinning Liquidity and Market Caution
Bitcoin traded near $89,000 as liquidity thinned and demand faded following a 25 basis point Federal Reserve rate cut. BTC and ETH retraced gains while altcoins remained under pressure, with the market showing caution and limited follow-through.
According to FlowDesk, leverage remains low, volatility is muted, and capital is shifting toward short-dated yield strategies, indicating a focus on balance-sheet optimization rather than directional bets. Glassnode reports that digital asset treasury buyers have resumed bitcoin accumulation within a range-bound market, noting that pauses in purchases contributed to stagnation during the fall period.
Price action continues to be range-bound, with rallies fading but downside limited, and ownership increasingly shifting to longer-term holders. While BTC hovers near $89,000, ETH displays relative resilience, holding gains better than bitcoin amid broader caution.
Meanwhile, gold prices remain near record highs around $4,300 per ounce, driven by the rate cuts, heavy debt loads, and sustained central bank demand ahead of year-end.
Asian markets opened lower as investors digested the Wall Street pullback. The Nikkei 225 declined, with market focus on China’s November data and Japan’s Tankan survey, which showed large-manufacturer sentiment at a four-year high.
