Bitcoin Price Analysis: BTC Steady As ETFs Indicate Cautious Recovery
Bitcoin (BTC) price action has been muted over the weekend as it steadies itself after Friday’s dramatic decline. The flagship cryptocurrency faced substantial selling pressure on Thursday and Friday, briefly dropping below $90,000 before settling at $90,278.
The Federal Reserve’s third consecutive rate cut failed to spark a rally, with one analyst stating that the flagship cryptocurrency may face further price declines.
SEC Issues Guidance For Retail Crypto Investors
The United States Securities and Exchange Commission’s (SEC) Office of Investor Education and Assistance has issued guidance on crypto custody options for retail investors. The guidance covers topics such as the difference between hot and cold wallets and the importance of keeping private keys and seed phrases secure. It also covers custody methods and discusses what investors must consider before deciding how to store their crypto assets. The SEC, under Paul Atkins, has increased efforts to oversee the digital asset market and strike a balance between innovation and consumer protection.
SEC Chair Paul Atkins has changed the SEC’s interpretation of crypto assets, stating they do not fall under securities. Atkins has emphasized self-custody and the development of super apps integrating multiple services.
Crypto ETFs Show Signs Of Recovery
Spot Bitcoin and Ethereum ETFs have recovered in December, indicating a return of investor interest. However, the ETFs are struggling to offset the losses sustained in November. According to data from SoSoValue, spot Bitcoin ETFs have registered $198 million in inflows so far this month. Unsurprisingly, BlackRock’s IBIT registered the most activity, accumulating nearly $4 billion to take its total holdings past $70 billion. Meanwhile, the total volume of BTC allocated by ETFs crossed $118 billion, accounting for 6.57% of the asset’s total market capitalization.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) steadied itself over the weekend after registering a dramatic fall on Friday. The flagship cryptocurrency briefly slipped below $90,000 on Friday, falling to a low of $89,500 before reclaiming $90,000 and settling at $90,278. Price action has been muted over the weekend, with BTC marginally down over the past 24 hours.
According to one analyst, Bitcoin price action is subdued because of long-term whales selling covered calls. This strategy involves selling call options, giving buyers the right but not an obligation to purchase an asset at a predetermined price. The analyst stated that Bitcoin whales introduced disproportionate sell-side pressure through the covered call strategy, with market makers buying the covered calls. Market makers must hedge their exposure to buy the calls by selling BTC, bringing prices down despite strong demand from other sources like ETFs. Park stated,
Because the </span></i><a href="https://coinstats.app/coins/bitcoin/"><b><i>BTC</i></b></a><i><span style="font-weight: 400;"> used to underwrite the options has been held for a long time and does not represent new demand or fresh liquidity, the calls act as a net downward pressure on prices. When you already have the Bitcoin inventory that you’ve had for 10-plus years that you sell calls against it, it is only the call selling that is adding fresh delta to the market — and that direction is negative — you are a net seller of delta when you sell calls.
Analysts have also noted that Bitcoin decoupled from the stock market in the latter half of 2025. Stocks, primarily tech-related stocks, reached record levels while Bitcoin fell towards $90,000. Analysts believe BTC will resume its rally as the Fed continues cutting rates and injecting liquidity into the market. However, three consecutive interest rate cuts have so far failed to spark a rally.
BTC ended the previous weekend in positive territory, rising 1.27% despite volatility and selling pressure, and settling at $90,402. Buyers retained control on Monday as the price rose 0.28% to $90,653. BTC continued pushing higher on Tuesday, rising over 2% and settling at $92,690. However, it lost momentum on Wednesday, dropping nearly 1% to $92,035.
Source: TradingView
Selling pressure and volatility intensified on Thursday as BTC fell to an intraday low of $89,257. However, it rebounded from this level to reclaim $90,000 and settle at $92,542. Price action turned bearish on Friday, with BTC falling 2.45% to $90,278. The flagship cryptocurrency has held above $90,000 over the weekend, with the price governing around $90,200.
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.