Bitcoin Rises Above $89,000 Amid Year-End Market Dynamics
Bitcoin traded above $89,000 during U.S. market hours, reaching approximately $89,058.68, after falling to around $87,000 the previous day. Open interest in Bitcoin declined slightly from 514,000 to 511,000 BTC following the U.S. market open, indicating short-covering activity rather than new long positions.
The market context includes typical end-of-year de-risking, ongoing ETF outflows, tax-related positioning, and light liquidity during the holiday season—all factors weighing on prices. Spot Bitcoin ETFs experienced $19.3 million in net outflows on Monday, marking the seventh consecutive day of redemptions. Since mid-December, outflows have totaled $1.29 billion, including a $157 million single-day outflow from BlackRock’s IBIT ETF, which has nonetheless recorded $25 billion in inflows year-to-date.
On December 26, derivatives markets saw the expiration of over $27 billion in Bitcoin and Ethereum options, the largest single-day expiry in crypto history. Funding rates and open interest declined approaching year-end. Bitcoin's seven-day realized volatility dropped through December 25 but has begun to rise again due to intraday price swings.
Wintermute strategist Jasper de Mare highlighted these de-risking factors and cautioned traders against relying heavily on short-dated signals until institutional flow resumes in early January. Meanwhile, altcoins largely avoided the wash-sale-driven selling pressure that affected Bitcoin and showed greater resilience during this period.
