Bitcoin rejects at key $93.5K as Fed rate-cut bets meet 'strong' bear case

Ether (ETH) has recently outperformed Bitcoin in terms of spot ETF flows and short-term returns, with technical charts indicating a potential 20% price increase. This trend suggests a shift in market dynamics favoring ETH over BTC as traders adjust their positions accordingly.

Bitcoin's price is expected to remain below $95,000 as low liquidity in December may limit its recovery rally, according to analyst Paul Howard. This situation could lead to rangebound trading for Bitcoin, which may inadvertently benefit smaller altcoins in the market.

Bitcoin is showing signs of a bullish trend as investor sentiment shifts positively, challenging a decade-long bearish seasonal pattern. This change suggests a potential for BTC to reach new highs before the end of 2025.

Bitcoin's correlation with the Nasdaq 100 has shown a negative trend, suggesting that a market bottom may be forming for the fourth time in five years. This historical pattern indicates that Bitcoin often finds its lowest points when its relationship with the Nasdaq weakens.

Larry Fink, CEO of BlackRock, stated that sovereign wealth funds have been purchasing Bitcoin during its recent price decline, indicating a long-term investment strategy rather than short-term trading. This aligns with BlackRock's position as a significant player in the cryptocurrency market, particularly with its IBIT Bitcoin ETF, which has gained substantial traction since its launch.

Recent outflows from U.S.-listed spot Bitcoin ETFs, totaling approximately $4 billion, were primarily attributed to specific arbitrage trade closures rather than widespread institutional panic. This indicates a more calculated market response rather than a reaction to broader market fears.

Bitcoin has recently surpassed the $93,000 mark, reflecting a resurgence in the cryptocurrency market. However, despite this price increase, Bitcoin reserves on Binance are declining, indicating a potential shift in market dynamics as traders may be withdrawing assets from exchanges.

The cryptocurrency market has seen notable fluctuations recently, with Bitcoin's price stabilizing around $90,000 despite pressures from ETF outflows and market volatility. This stabilization follows a period of significant price drops and uncertainty, indicating a potential recovery in market confidence as sentiment shifts from extreme fear to a more bullish outlook.