Bitcoin Price Analysis: BTC Reclaims $85,000 But Market Sentiment Remains Wary
Bitcoin (BTC) bounced back on Sunday to reclaim $85,000 and start the week in positive territory. However, the flagship cryptocurrency lost momentum despite reaching an intraday high of $88,100, and is marginally down during the ongoing session.
BTC is facing substantial selling pressure, with spot Bitcoin ETFs recording a surge in trading volume. Analysts believe the jump in trading volume, along with record redemptions, indicates institutional capitulation.
JPMorgan Boycott Calls Gather Momentum
Boycott calls against JPMorgan by the Bitcoin community and Strategy supporters have grown louder after it emerged that the MSCI, formerly Morgan Stanley Capital International, an index company that sets the criteria for index inclusion, is likely to exclude crypto treasury companies like Strategy from its indexes in January 2026. JPMorgan shared the MSCI news in a research note, prompting calls for a boycott. Real estate agent and Bitcoin advocate Grant Cardone stated in response to the boycott calls,
“I just pulled $20 million from Chase and am suing them for credit card malfeasance.”
The exclusion of crypto treasury companies from stock indexes could trigger an automatic selloff of their shares from funds and asset managers mandated to buy specific types of financial instruments. As a result, the exclusion could have a significant impact on the crypto market. Strategy entered the Nasdaq 100 in December 2024. The inclusion allowed the company to benefit from passive capital flows from funds and investors holding the Nasdaq 100. Strategy founder and executive chairman Michael Saylor responded to the news, stating,
“Strategy is not a fund, not a trust, and not a holding company. Funds and trusts passively hold assets. Holding companies sit on investments. We create, structure, issue, and operate. Strategy is a Bitcoin-backed structured finance company.”
Zcash Could Adversely Impact Bitcoin (BTC)
Bloomberg ETF analyst Eric Balchunas believes that Zcash could adversely impact Bitcoin, risking a split in the vote against the flagship cryptocurrency at a time when it needs unified political and cultural support. Balchunas stated in a post on X,
“Zcash has third-party candidate vibes, like Gary Johnson or Jill Stein. Seems like you are better off folding in their ideas into the main party vs splitting the vote, which could have major consequences, especially in such a crucial time for BTC. I don’t get it. I’m just an ETF guy, though.”
The analyst’s comments come as the Bitcoin vs Zcash debate intensifies. However, Arman Meguerian, founder and CEO of Timestamp, dismissed ideas that Bitcoin supporters are pivoting to Zcash.
“I don’t know a single bitcoin maxi that thinks about Zcash at all.”
Meanwhile, Jan3 founder Samson Mow stated,
“We are only looking at Zcash to roll our eyes at it.”
Most Clients Not Considering Bitcoin (BTC) For Daily Payments: BlackRock
Robbie Mitchnick, BlackRock’s head of digital assets, stated that most of the asset manager’s clients are not considering using Bitcoin for daily payments when deciding to invest in the asset. Mitchnick stated during a podcast on YouTube,
“I think for us, and most of our clients today, they’re not really underwriting that global payment network case. That’s sort of maybe out-of-the-money-option-value upside.”
However, he clarified that this does not mean Bitcoin won’t eventually achieve recognition as a mode of payment. However, he called such a scenario speculative, adding that investors were more interested in the “digital gold” and “store-of-value” thesis.
“There’s a lot that needs to happen in terms of Bitcoin scaling, Lightning, and otherwise to make that possible.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) rebounded over the weekend after falling to a low of $80,524 on Friday. The flagship cryptocurrency registered a marginal drop on Saturday before rising 2.51% on Sunday and settling at $86,808. However, selling pressure has returned during the ongoing session, with the price down nearly 1% at $86,199.
The flagship cryptocurrency’s price volatility has surged over the past two months, indicating a potential return to options-driven price action that could trigger large moves in either direction. According to Jeff Park, market analyst at Bitwise, BTC’s implied volatility has never crossed 80% since the launch of spot Bitcoin ETFs. However, Park highlighted a chart revealing that volatility is pushing towards 60%. Park said Bitcoin’s price action in January 2021, which kicked off its 2021 bull run, was the last options-driven melt-up. Park stated,
“Ultimately, it is options positioning, not just spot flows, that creates the decisive moves that carry Bitcoin to new highs. It’s possible that for the first time in nearly two years, the volatility surface is flickering with early signs that Bitcoin might become option-driven again.”
The analysis questions the theory that Bitcoin ETFs and institutional investors had rooted out volatility and shifted Bitcoin’s market structure to reflect a more mature asset class.
BTC reclaimed $86,000 on Sunday and added marginal gains during the ongoing session. Analysts believe the price should stabilize between $$89,000 and $95,000, ruling out a quick return to $100,000. They also highlighted substantial outflows from spot Bitcoin ETFs last week to reiterate their stance about institutional demand cooling. Analysts from TeraHash stated,
“At the peak of inflows in late Q2, spot Bitcoin ETFs were drawing around $600–$700 million daily. Due to that, the price quickly broke above the $115,000 mark, eventually setting an all-time high above $126,000. So, ETFs are a direct reflection of the demand level.”
The last 24 hours have seen trading volumes rise to $64.7 billion, indicating a jump in activity after heavy selling. ConGlass data shows that derivatives volume increased 35% to $93 billion, while open interest rose 0.64%. Rising volumes and higher open interest indicate that traders are returning to the market after a period of liquidation.
BTC started the previous weekend in bearish territory, dropping over 5% and settling at $94,503. It recovered on Saturday, rising 1.10% to $95,544, but was back in the red on Sunday, dropping 1.42% and settling at $94,183. Sellers retained control on Monday, BTC fell 2.21% and settled at $92,100. The flagship cryptocurrency fell to an intraday low of $89,183 on Tuesday. However, it recovered from this level to reclaim $92,000 and settle at $92,914, ultimately rising 0.88%. Selling pressure returned on Wednesday as BTC fell to a low of $88,483 before settling at $91,461.
Source: TradingView
Selling pressure intensified on Thursday as BTC fell over 5%, slipping below $90,000 and settling at $86,536. Bearish sentiment persisted on Friday as BTC plunged to an intraday low of $80,524 before rebounding to reclaim $85,000 and settle at $85,068. Price action was mixed over the weekend as BTC fell 0.45% on Saturday before rising 2.51% on Sunday and settling at $86,808. The price is down nearly 1% during the ongoing session, trading around $86,200.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.