Trading

BlackRock deposited 1,634 BTC valued at approximately $142.6 million to Coinbase Prime on December 2, data show. The asset manager executed multiple transfers including several 300 BTC batches and one 133 BTC transaction. This follows a December 1 outflow of 729.62 BTC ($113.7 million) from BlackRock's Bitcoin ETF.

Bitcoin has reclaimed the $90,000 level following an intraday surge that reversed recent declines. The rally was accompanied by over $147 million in short position liquidations, data show. The cryptocurrency had dropped to the mid-$87,000 range in the prior 48 hours before buyers drove prices more than 3% higher.

Strategy Inc. has accumulated 650,000 BTC after purchasing 130 coins at approximately $89,960 each, while establishing a $1.44 billion cash reserve to cover preferred stock dividends and debt obligations. The company's market capitalization stands at roughly $45 billion, about $10 billion below the $55 billion market value of its bitcoin holdings. The firm's stock has fallen 57% since October 6, raising questions about the sustainability of its acquisition strategy under current market conditions.

Bitmine purchased 96,800 Ethereum tokens worth approximately $273 million over the past week, according to Arkham Intelligence. The acquisition occurred as ETH traded near $2,800 and found support at the 78.6% Fibonacci retracement level around $2,716. The firm currently holds approximately 3.44 million ETH valued near $10 billion, with $880 million in capital designated for future purchases.

The Federal Reserve ended its quantitative tightening program on December 1, injecting $13.5 billion into the U.S. banking system through overnight repurchase agreements. Data show this represents the second-largest liquidity injection since the COVID-19 era, exceeding levels seen during the Dot Com Bubble. The move marks a shift from the balance sheet reduction that began in April 2022.

The Federal Reserve ended quantitative tightening on December 1 and immediately deployed a $13.5 billion overnight repo operation. Analysts view the liquidity shift as a potential catalyst for risk assets, though a possible Bank of Japan rate hike in December could temporarily moderate gains. The move marks the first significant liquidity injection since the withdrawal phase began in June 2022.

Bloomberg Senior ETF Analyst Eric Balchunas challenged a Citi research note claiming U.S. spot Bitcoin ETF outflows directly correlate with price declines. Citi estimated each $1 billion in withdrawals corresponds to a 3.4% price drop. Balchunas argued the calculation ignores $22.5 billion in year-to-date inflows, which would imply a 77% price increase by the same logic.

Bitcoin traded above $86,000 after recovering from a brief drop below $84,000 on Tuesday. The cryptocurrency faces potential upward movement toward $93,000 resistance, while the critical $83,000 support level remains intact. Options data shows 15% of traders expect BTC to fall below $80,000 by year-end, while 21% anticipate prices exceeding $100,000.

Grayscale Research forecasts bitcoin will reach new all-time highs in 2026, rejecting the traditional four-year cycle theory that anticipates extended bear markets. The firm points to institutional investment structures and favorable macroeconomic conditions as key differentiators from prior cycles. Bitcoin traded at $86,909 as of 2:20 a.m. ET Tuesday after declining 32% from its peak.

Several market analysts view Bitcoin's recent decline as a temporary pullback rather than a trend reversal, with multiple forecasts pointing to a potential rally in the coming weeks. Fundstrat's Tom Lee expects Bitcoin could surpass its prior peak near $125,000 as early as January, while others cite macroeconomic policy shifts as key drivers. Rising speculation over Federal Reserve leadership change and historical policy patterns add to bullish sentiment for early 2025.