Bitcoin Edges Closer to $90K as Crypto Market Cap Surpasses $3T

Bitcoin's price has been consolidating within a tight range of $85,000 to $90,000 for two weeks, but it's still edging towards the $89,000 mark. The total cryptocurrency market capitalization reached $3.08 trillion, up 1.2% from the previous day.

The price drop was accompanied by significant outflows from U.S. spot Bitcoin ETFs, which recorded their worst two-month stretch with $4.57 billion in combined outflows through November-December. This marked the largest two-month redemption since the products launched in January 2024.

Despite the decline, analysts suggest that the consolidation represents institutional positioning rather than panic selling as markets await fresh catalysts in 2026. Market volatility measured by Bollinger Bands narrowed to its lowest level since July, suggesting a potential significant price movement ahead.