Bitcoin Price Today Holds Around $88.7K Amid Year-End Trading Slump

Bitcoin’s price has been hovering near $88.75K today, reflecting the market’s struggle to maintain momentum as holiday trading conditions drain liquidity from the market. The cryptocurrency showed a modest 1.69% gain over the past 24 hours, but the movement lacks the follow-through needed to break above key resistance levels. Today’s bitcoin price action underscores a deeper issue: with year-end approaching and many traders on the sidelines, volume has thinned to roughly $946 million in daily turnover—a stark contrast to the robust participation usually seen during bull markets.

The broader picture reveals a cryptocurrency market caught between conflicting forces. Bitcoin’s market capitalization sits at approximately $1.77 trillion, underpinned by a circulating supply of roughly 19.98 million coins out of a maximum 21 million. Yet despite these fundamentals, the price remains constrained within a range spanning $85,000 to $95,000—a pattern that has persisted since October’s sharp selloff.

Liquidity Crisis Halts Rally as Holiday Trading Shrinks

The year-end period has become a double-edged sword for bitcoin price performance. While the cryptocurrency was boosted earlier in 2025 by optimism surrounding crypto-friendly policies, that enthusiasm has since evaporated amid concerns about tariff policies and global market uncertainty. Bitcoin has consequently retreated roughly 5% since the prior year-end, setting the stage for its first annual loss in three years.

According to analysts at Wintermute, exaggerated price swings on minimal trading flow are now the norm. The desk strategist cautioned that short-term signals can be misleading during these conditions—a warning particularly relevant as traders face thinning liquidity heading into the new year. The situation has been aggravated by significant outflows from spot Bitcoin exchange-traded funds, which hemorrhaged approximately $6 billion during the fourth quarter alone.

Recent price action illustrates this dynamic vividly. Earlier in the week, bitcoin price swung sharply around $90,000 during low-liquidity Asian sessions, posting rapid gains and losses that never gained traction. The rally stalled repeatedly as sellers emerged, unable to reclaim and hold above the $90,000 level consistently.

Leveraged Traders and Gamma Dynamics Weigh on Upside

The mechanics underlying today’s bitcoin price stagnation extend beyond simple supply-demand dynamics. October saw a cascade of liquidations when leveraged long positions reached record levels before a sharp selloff flushed out weak hands on October 10th. This event reset market positioning but left the market structurally fragile.

The December options expiry further complicated conditions. According to QCP Capital’s analysis, open interest plummeted by nearly 50% following the event, signaling widespread position-taking among traders. Most significantly, dealers who had been long gamma ahead of the expiry shifted to short gamma on the upside—meaning that as prices rise, hedging activity becomes forced and self-reinforcing, amplifying moves in thin liquidity.

This setup mirrors conditions from earlier in the month. Funding rates on perpetual contracts surged above 30% on Deribit following the latest options expiry, up from near-zero levels beforehand. Such elevated rates signal overheated positioning and rising costs to maintain long exposure, often coinciding with market peaks when conviction evaporates.

Technical Picture Suggests $84K Is Critical Support

From a technical perspective, Bitcoin Magazine’s analysts observe that the market continues to reject lower levels within a broadening wedge pattern, suggesting that downside momentum has weakened despite the price being unable to sustain breakouts. This sets up a directional fork ahead.

On the upside, key resistance sits at $91,400 and $94,000. A weekly close decisively above $94,000 could theoretically open a path toward $101,000 and $108,000, though resistance at those levels remains formidable. The all-time high of $126.08K established earlier in 2025 remains a psychological target for bulls, though that peak now seems distant.

The downside warrants equal attention. Critical support rests at $84,000. Should the market break below this level, bitcoin price could face pressure toward the $72,000-$68,000 range, erasing the majority of 2025’s gains entirely.

As today’s bitcoin price remains locked near $88.7K, market participants await clarity on whether liquidity normalization will bring decisive directional movement. Until then, expect continued range-bound chop and exaggerated volatility on light trading flows.