Bitcoin (CRYPTO:BTC) slipped below the $90,000 level on Tuesday as thin holiday liquidity, rising precious metals prices and a looming record options expiry combined to pressure digital asset markets.
The world’s largest cryptocurrency briefly touched $90,000 during Monday’s intraday session before retreating to around $87,400, extending a pattern of short-lived rallies meeting strong overhead resistance.
Broader market weakness was evident as ether (CRYPTO:ETH) declined to roughly $2,960, BNB (CRYPTO:BNB) fell to about $850 and Solana (CRYPTO:SOL) dropped near $125, dragging total crypto market capitalisation back towards the $3 trillion mark.
The tone remains defensive, rallies lack follow-through, while sell-offs are shallow but persistent.
Timothy Misir said.
Investor caution was also reflected in institutional flows, with US-listed spot bitcoin exchange-traded funds recording $142 million in net outflows on 22 December, according to market data.
In contrast, ether-linked products attracted $84.6 million in inflows, while Solana and XRP (CRYPTO:XRP) exchange-traded products drew $7.47 million and $43.89 million respectively.
Analysts widely agree that Friday’s Boxing Day options expiry has emerged as the dominant near-term catalyst for price action across crypto markets.
Around 300,000 bitcoin options contracts, representing approximately $23.7 billion in notional value, are due to expire, accounting for more than half of total open interest on derivatives exchange Deribit.
This expiry is record-shattering, with $28.5 billion in combined BTC and ETH options rolling off, but the market remains orderly.
Jean-David Pequignot said.
Options positioning is concentrated around the $85,000 and $100,000 strike levels, reflecting what analysts describe as cautious optimism for a late-year Santa rally.
Funding rates have climbed from 0.04% to 0.09%, signalling a renewed build-up of leveraged long positions despite declining market depth.
QCP Capital noted that traders are actively reducing risk rather than rotating exposure, with bitcoin perpetual open interest dropping by roughly $3 billion overnight.
Liquidity is thinning meaningfully, which raises the risk of sharp squeezes in either direction.
QCP Capital said.
Analysts added that price moves during the Christmas period often reverse in January once full market participation returns, suggesting recent volatility is largely mechanical.
While cryptocurrencies struggled for direction, gold surged to a fresh record near $4,450, highlighting renewed demand for macro hedges into year-end.
Political uncertainty has also weighed on sentiment after President Trump confirmed he would announce his pick for the next Federal Reserve chair by early January.
As of 23 December, bitcoin was on course for its weakest fourth-quarter performance in eight years, having fallen 6% year to date and nearly 20% over the past six months.
At the time of reporting, Bitcoin price was $87,591.13.