Bitcoin Sits Near $88.7K as ETF Inflows Decide 2026 Momentum
Bitcoin traded sideways around $88,700 on 31 December 2025 as 2025 closed with muted momentum and steady institutional demand. Spot Bitcoin ETFs hold roughly $116.5 billion in assets with cumulative inflows near 612,000 BTC, suggesting institutional buying is smoothing volatility and supporting medium-term price floors. On-chain and market data show market cap near $1.77 trillion and 24-hour volume around $33.9 billion. Technically, BTC is trapped in a symmetrical triangle between about $92,200 (resistance) and $87,700 (support); 2‑hour 50- and 100‑EMA converge and RSI sits near 50, indicating consolidation. Potential scenarios: a clear break above $90,000 could target $92,200–$94,000; a drop below $87,700 risks $86,700, though ETF absorption may limit downside. Traders should watch ETF inflows, liquidity and exchange supply—they are the most likely drivers of a breakout or extended consolidation into early 2026.
Neutral
The article describes a consolidation phase supported by persistent institutional demand through spot Bitcoin ETFs. ETF assets (~$116.5bn) and cumulative inflows (~612k BTC) act as a stabilizing force that has reduced volatility and absorbed sell pressure, which limits near-term downside — a bullish structural factor. However, technical indicators (symmetrical triangle, EMAs overlapping, RSI ~50) and narrow price range indicate indecision and lack of momentum to push a decisive breakout — a neutral short-term signal. Historically, sustained ETF inflows have reduced drawdowns and biased markets upward over months, but price still needs a catalyst (e.g., renewed large inflows or macro news) to convert consolidation into a clear bullish trend. For traders: expect limited-range trading and two-way liquidity in the short term; use tight risk management around $87.7k support and $90k resistance. A breakout above $90k with volume would be a bullish trigger; failure to hold support could produce a shallow correction cushioned by ETF absorption.