Bitcoin declined to $92,000 following a -32% drawdown from its all-time high, marking the steepest correction in the current cycle. On-chain data shows the P/L Score has remained in the -3 zone since November 6, a level historically associated with bearish market regimes and extended correction phases.

JPMorgan analysts said on December 4 that MicroStrategy's financial stability holds greater influence over Bitcoin's short-term trajectory than recent miner selling activity. The firm's Managing Director Nikolaos Panigirtzoglou noted that MSTR's enterprise value-to-bitcoin holdings ratio of 1.13 provides market reassurance despite declining hashrate and operational pressures on miners.

U.S. spot bitcoin exchange-traded funds recorded net outflows of $194.6 million on Thursday, marking the largest single-day withdrawal in two weeks, data show. BlackRock's IBIT led outflows with $112.9 million, while Fidelity's FBTC saw $54.2 million in withdrawals. Trading volume for these products declined to $3.1 billion from $4.2 billion the previous day.

Bitcoin is maintaining support near $92,000 as technical indicators show weakening bearish momentum. Market sentiment received support from two developments: Binance co-founder CZ challenged gold advocate Peter Schiff to verify a gold bar's authenticity at Binance Blockchain Week, while Bitwise CIO Matt Hougan dismissed concerns that Strategy might be forced to liquidate its Bitcoin holdings.

Approximately 37,000 Bitcoin options contracts with a notional value of $3.4 billion expire on December 5, with a put/call ratio of 0.94 indicating balanced positioning between bulls and bears. Ethereum options worth $667 million also expire the same day, bringing total cryptocurrency options expiry to approximately $4 billion. Max pain for Bitcoin is estimated at $91,000, while the highest open interest concentration sits at the $100,000 strike price.

BlackRock CEO Larry Fink said sovereign wealth funds purchased Bitcoin during its recent decline below $90,000. Speaking at the New York Times DealBook Summit on December 4, 2025, Fink said these state-backed investors bought incrementally at $120,000 and $100,000, then increased purchases when Bitcoin fell into the $80,000 range. He said these institutions are building long-term positions rather than trading.

Bitcoin recovered above $90,000 after falling to $88,000 earlier this week. The rebound was accompanied by positive shifts in derivatives markets and increased spot demand from U.S. investors, data show. A key futures market indicator reached 56.5, approaching the 60 threshold that would confirm sustained bullish conditions.

A previously inactive whale address withdrew 171 BTC valued at $15.79 million from Binance after a year of dormancy, according to Onchain Lens. Bitcoin traded at $93,050 with minimal 24-hour movement as Open Interest declined 0.70% to $60.19 billion, reflecting reduced trader activity while the asset tests descending trendline resistance.