Bitcoin rebounds near $90,000 levels though volatility persists

The Bitcoin price stood at $88,970.24 on December 26 (10:20 a.m. IST), up 1.41 percent in a day and 2.26 percent in a week. In the morning session, the world’s largest cryptocurrency fell as low as $86,897 and peaked at just above $89,188.

“BTC bounced 1.6% from $87K toward $89K. Today, around $28 billion in crypto options, including $23.7 billion in Bitcoin, are set to expire. Until then, prices may mostly move sideways in a volatile range as market makers hedge positions and pin BTC near key levels. Once the expiry is complete, this pressure might fade. A quick dip to trigger stop-losses is possible, but large expiries are often neutral-to-bullish. Currently, BTC has support at $87K and resistance at $89K,” said CoinSwitch Markets Desk.

“Bitcoin is showing renewed strength, rising nearly 3% within a short span as broader market sentiment turns positive. The move suggests a delayed ‘Santa Rally,’ with buying interest returning across major assets. Sustained trading volumes from here could confirm a shift in trend. A clean break above $89,700 level would open the door for an extended rally toward the $100,000 mark. On the downside, $87,000 now serves as an important support zone, helping anchor the current move,” said Akshat Siddhant, Lead Quant Analyst, Mudrex.

The volatility has been observed across other cryptocurrency tokens as well, with ETH up 1.63 percent, ADA down 1.95 percent, SOL up 0.13 percent, XRP up 1.33 percent, and Tether is down 0.01 percent in the past 24 hours.

“Bitcoin price rises above $89,000, Ethereum below $3000, XRP around $1.83, and Solana close to $121.5. Despite the sideways trend, the top gainers for the day include DoubleZero with over an 11.27% jump, followed by Maple Finance by 9.69% and Merlin Chain and pippin by over 5% each. Besides, Memecore plunges by over 8.44%, followed by Canton and ether.fi by over 4% each,” said CoinDCX research team.

Check out the cryptocurrency prices on December 22, as of 10:30 a.m (IST).

Why is Bitcoin down? 

According to Riya Sehgal, Research Analyst at Delta Exchange, bitcoin held near $89,000 on December 26 as thin year-end trading kept price action contained. Liquidity remains the key market driver, with ETF inflows, stablecoin supply, and futures positioning determining direction more than narratives.

“Bitcoin’s post-election surge was led by leveraged flows and ETFs, not spot demand. On the 4-hour chart, Bitcoin trades between support at $87,800–$86,800 and resistance at $89,800–$90,500, with the 200 EMA acting as a key barrier. It remains below its 200 EMA, reflecting continued compression across short-and medium-term moving averages. Regulatory clarity and ETF participation support the long-term trend, but short-term movement stays range-bound until capital inflows strengthen.”

What’s happening in the crypto market?

Nischal Shetty, Founder of WazirX, said that in the last 24 hours, global macro developments have reinforced how crypto is intertwined with monetary policy, currency markets, and liquidity dynamics.

Here’s a rundown on what’s happening in the crypto market, according to Shetty:

• Diverging central bank actions, particularly Japan signalling continued tightening while other major economies remain cautious, have increased FX volatility. This divergence reinforces Bitcoin’s relevance as a neutral, non-sovereign asset operating outside national policy frameworks.
• Rising currency instability reinforces the outside-money narrative. The Yen’s sensitivity to inflation data and policy guidance shows how quickly fiat currencies react to central bank signals, highlighting reliance on intervention and credibility.
• In contrast, Bitcoin’s fixed supply and predictable issuance stand out in a narrative-driven fiat system where confidence must be actively managed.
• Meanwhile, slowing global growth is creating policy tension. Historically, central banks prioritise supporting growth over defending currency strength, increasing the likelihood of future easing. These expectations support crypto’s medium-term outlook despite uneven near-term price action. In the short term, crypto prices are driven primarily by liquidity expectations rather than economic fundamentals.
• Bitcoin often moves ahead of policy shifts as markets price future liquidity, making it behave like a high-beta risk asset alongside equities globally. Ethereum, currently trading at $2,973, is likely to remain volatile in the near term, tracking liquidity conditions and broader risk appetite.
• Still, policy divergence, FX instability, and expectations of easing support medium-term upside, with ETH benefiting from its role as core crypto infrastructure.