Bitcoin held steady near $89,000 on Monday as investors navigated a mixed global market, with gold hitting record highs of above $4,380.
The cryptocurrency has traded mostly sideways throughout December, rising about 5.5% over the past month but remaining largely flat in recent days, reflecting cautious market sentiment ahead of year-end.
Institutional Demand Slows
Institutional and large-holder demand is showing signs of contraction, signaling a potential shift toward a bear phase, according to CoinGlass.
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US spot Bitcoin ETFs, which were previously major buyers, have become net sellers, offloading roughly 24,000 Bitcoin in Q4 2025.
Meanwhile, addresses holding 100–1,000 BTC, often representing ETFs and corporate treasuries, are accumulating at a rate below historical trends, indicating weakening support for higher prices.
Technical Weakness Emerges
Analysts note that this slowdown highlights a broader cooling of investor enthusiasm, with demand exhaustion emerging as a key factor in Bitcoin’s price dynamics.
Technical indicators reinforce this view. Bitcoin recently broke below its 365-day moving average (MA), a long-term support level that often separates bull and bear regimes.
CoinGlass suggests that without renewed buying pressure, the cryptocurrency may enter a relatively shallow bear market, with potential support levels near $70,000 and a lower reference around $56,000.
Why this matters
The slowdown in institutional buying underscores Bitcoin’s vulnerability to downside risk, signaling that 2026 may start with more cautious market conditions.
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People Also Ask:
Bitcoin is range-bound as institutional demand slows and technical support levels are tested, limiting upward momentum.
When ETFs reduce holdings, it signals lower buying pressure from large investors, which can weaken overall market support.
Large investors like ETFs and corporate treasuries influence market stability; declining activity can increase price volatility.
Reduced institutional demand may lead to cautious trading and a relatively shallow bear market as the new year begins.
