Crypto Traders Turn Cautious, Favor Bitcoin Over Risky Altcoin Bets
Bitcoin rebounded to around $92,000 after last week’s $2 billion liquidation, with traders favoring delta-neutral and Bitcoin exposure over directional altcoin bets amid Federal Reserve uncertainty and compressed basis rates.
Market activity narrowed to Bitcoin and Ethereum as investors await clarity from the Federal Reserve and macroeconomic indicators, with the total crypto market capitalization around $3.25 trillion.
Friday’s liquidation erased roughly $2 billion in leveraged positions; Bitcoin briefly dipped below $88,000 before buyers stepped in.
Glassnode data shows Bitcoin's 14-day RSI rose to 58.2, while spot volume increased by 13.2% to $11.1 billion. Despite ETF volume rising 21.33% to $22.6 billion, ETF flows saw a $707.3 million outflow, and ETF MVRV stood at 1.67.
Institutional flows turned negative, with over $2.7 billion exiting BTC products over five weeks. Meanwhile, MicroStrategy purchased 10,624 BTC for about $962.7 million at $90,615 per BTC, bringing total holdings to 660,624 BTC valued around $49.35 billion as of December 7, 2025, adding $21.48 billion in 2025.
Futures open interest declined to $30.6 billion, while perpetual funding rates showed more support on the long side with payments around $522,700.
On-chain metrics indicate approximately 693,035 active addresses; entity-adjusted transfer volume rose 17.1% to $8.9 billion. The Realised Cap Change registered at 0.7%, and the short-term to long-term holder ratio is 18.5%, showing continued dominance by short-term holders.
A stronger yen could increase the risk of unwinding yen carry trades, potentially weighing on crypto valuations as leveraged positions reset across global markets.
Key resistance remains at or above $100,000, which could open the path to $120,000 and above, while failure to sustain this level could pull Bitcoin back to the $82,000–$88,000 range.
