Bitcoin Price Analysis: Will BTC See A Big Year-End Move?
Bitcoin (BTC) slipped below $87,000 on Wednesday as hopes of a big move before the new year appeared slim. US stocks opened higher after market data showed the US economy grew at its fastest pace in two years. The S&P 500 also closed at a record level on Tuesday after a revision to third-quarter numbers revealed a 4.3% annualized growth.
Meanwhile, Bitcoin entrepreneur Anthony Pompliano believes the flagship cryptocurrency’s muted price action towards the end of the year could help prevent a significant crash in Q1 2026.
Peter Schiff Warns Of Downside Risk
Bitcoin critic and gold advocate Peter Schiff has warned that Bitcoin (BTC) is losing its bullish narrative. Schiff argued that the asset failed to rally alongside tech stocks and precious metals, adding that it has little upside left. The Bitcoin critic added that if the price cannot rise alongside other assets, it can only fall, and that long-term holders should hope the asset does not face a prolonged decline.
If Bitcoin won’t go up when tech stocks rise, and it won’t go up when gold and silver rise, when will it go up? The answer is: it won’t. The Bitcoin trade is over. The suckers are all in. If Bitcoin won’t go up, it can only go down. If HODLers are lucky, it won’t be a slow death.
ETF Outflows Could Indicate Liquidity Contraction
Glassnode believes the sustained ETF outflows could be indicative of liquidity contraction in the crypto market. The analytics platform highlighted that the 30-day moving average of net inflows into Bitcoin and Ethereum ETFs has been negative since November, indicating a sustained pullback in institutional interest and participation. According to Glassnode, sustained outflows mean institutions are withdrawing capital, leading to an overall contraction in liquidity across the crypto market.
Since early November, the 30D-SMA of net flows into both Bitcoin and Ethereum ETFs has turned negative and remained so. This persistence suggests a phase of muted participation and partial disengagement from institutional allocators, reinforcing the broader liquidity contraction across the crypto market.
U.S.-listed Bitcoin ETFs registered $188.6 million in net outflows on December 23. BlackRock’s IBIT led the outflows with $157 million, while Grayscale’s GBTC registered $10.3 million in outflows. Spot Ethereum ETFs also registered substantial outflows of $95.53 million, with Grayscale’s ETHE accounting for $50 million.
Is Bitcoin Dominance Increasing?
Meanwhile, a Wintermute report stated that, despite the notable downside pressure on the crypto market last week, sentiment was stabilizing as Bitcoin’s dominance continued to rise. Altcoins, including Ethereum (ETH), have remained under pressure due to token unlocking schedules and supply overhangs. The platform noted that despite short-term volatility, institutional and retail capital are concentrating in BTC and ETH as the broader market lacks macroeconomic and policy catalysts to trigger a sustained rally.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) extended its downtrend for a third consecutive day as it slipped below $87,000 on Wednesday. The flagship cryptocurrency briefly crossed $90,000 on Monday but failed to sustain momentum, dropping to $88,556. Selling pressure persisted on Tuesday as BTC fell 1.27% to $87,429. The price is down nearly 1% during the ongoing session, trading around $86,898.
Meanwhile, hopes of a year-end rally are fading as price action remains muted. However, Bitcoin entrepreneur Anthony Pompliano believes this could be a good thing and keep price action stable during the first quarter of 2026. Pompliano stated during an interview,
Given where the volatility is right now, it would be very surprising that Bitcoin’s volatility has drastically compressed and yet still could get a 70% or 80% drawdown.
Pompliano believes that the short-term failure to reach $250,000 this year has led holders to overlook BTC’s stellar performance so far. He called the flagship cryptocurrency a market monster, stating,
We have to remember that Bitcoin is up 100% in two years. It’s up almost 300% in three years. It has been compounding. This thing has been a monster in financial markets.
Pompliano added that Bitcoin holders had also failed to notice the decline in Bitcoin price volatility, stating,
We didn’t get a blowoff top that I think people expected at the end of Q3, or beginning of Q4, but we haven’t seen the big 80% drawdown that people normally expect as well.
Some Bitcoin advocates, including Tom Lee and Arthur Hayes, had predicted the flagship cryptocurrency could reach $250,000 this year. However, not everyone shares the same optimism. Veteran trader Peter Brandt has predicted a drop to $60,000 for the flagship cryptocurrency in Q3 2026. Meanwhile, Fidelity’s Jurrien Timmer believes 2026 could be an off year for Bitcoin.
BTC started the previous week in bearish territory, dropping 1.99% to $86,417. However, it recovered on Tuesday, rising 1.66% to reclaim $87,000 and settle at $87,854. The price reached an intraday high of $90,336 on Wednesday but lost momentum after reaching this level and settled at $86,209. Bitcoin bulls made another attempt to breach the $90,000 ceiling as the flagship cryptocurrency reached an intraday high of $89,447. However, selling pressure at upper levels forced BTC into a retreat as it settled at $85,460, down almost 1%.
Source: TradingView
Despite the overwhelming selling pressure, BTC recovered on Friday, rising over 3% to $88,092. Price action remained positive over the weekend as BTC registered marginal increases on Saturday and Sunday, settling at $88,639. The flagship cryptocurrency reached an intraday high of $90,541 on Monday. However, it lost momentum after reaching this level and settled at $88,556, ultimately registering a marginal decline. Selling pressure persisted on Tuesday as the price fell over 1% to $87,429. BTC is down nearly 1% during the ongoing session, trading around $96,966.
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.
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.