The post Here is Why Bitcoin’s Rally Keeps Failing Near $90,000 appeared on BitcoinEthereumNews.com. Bitcoin Bitcoin’s price weakness around the $90,000 zone isThe post Here is Why Bitcoin’s Rally Keeps Failing Near $90,000 appeared on BitcoinEthereumNews.com. Bitcoin Bitcoin’s price weakness around the $90,000 zone is

Here is Why Bitcoin’s Rally Keeps Failing Near $90,000

2025/12/14 19:03
Bitcoin

Bitcoin’s price weakness around the $90,000 zone is not coming from panic selling, bad news, or vanishing interest. It’s coming from the people who are most confident in Bitcoin’s long-term future.

Some of the largest and oldest holders in the market are not exiting their positions. Instead, they are actively monetizing them – and that behavior is quietly reshaping how Bitcoin trades day to day.

Key Takeaways

  • Bitcoin’s price pressure is coming from long-term holders monetizing positions, not panic selling.
  • Derivatives activity is creating steady sell pressure despite strong spot demand.
  • Market structure, not sentiment, is now driving short-term Bitcoin price action.

Rather than selling coins outright, these long-term holders are using derivatives to extract income from their Bitcoin reserves. The effect is subtle, but powerful: price pressure without visible distribution.

Why “Strong Hands” Are Creating Weak Price Action

Bitcoin has no shortage of buyers. Spot ETFs continue to attract capital, and long-term conviction remains high. Yet rallies stall, breakouts fail, and price drifts sideways or lower.

The reason lies in who controls supply.

Early holders, sitting on Bitcoin accumulated many years ago, already have inventory. When they seek yield, they don’t need new buyers to sell into. They sell optionality instead. That choice doesn’t reduce their holdings, but it does introduce a steady, mechanical force that leans against upward price movement.

A Market Moved by Mechanics, Not Sentiment

Once these positions are established, the burden shifts elsewhere. Counterparties managing the risk of those trades are forced to respond, and their response is predictable: they offset exposure by selling Bitcoin in the open market.

That flow doesn’t show up as whale dumps. It appears as persistent resistance, capped rallies, and frustrating price action that feels disconnected from demand.

In this environment, Bitcoin can look weak even when fundamentals appear strong. The market isn’t voting against Bitcoin – it’s being nudged lower by structure.

Why ETFs Aren’t “Saving” the Price

ETF inflows are real, but they aren’t dominant.

When Bitcoin was driven primarily by spot buyers, capital inflows translated more directly into price. Today, derivatives activity can absorb and neutralize that demand. Each burst of buying meets an invisible counterweight created by hedging flows tied to existing inventory.

That’s why ETF demand can coexist with stalled price action. One side is buying Bitcoin for exposure. The other is selling Bitcoin to manage risk created elsewhere. The result is equilibrium, not momentum.

A Bitcoin Market That Has Grown Up

This dynamic marks a shift in Bitcoin’s evolution. The market is no longer dominated by simple buy-and-hold behavior. It is increasingly shaped by sophisticated capital managing balance sheets, volatility, and yield.

That sophistication brings liquidity and depth, but it also introduces new constraints. Price no longer responds cleanly to bullish narratives. It responds to positioning.

As long as large holders continue to prioritize income generation over directional bets, Bitcoin’s price is likely to remain noisy, range-bound, and difficult to trade.

What Breaks the Pattern

A sustained move higher would require a change in behavior, not just better headlines. Either long-term holders reduce their yield strategies, or demand becomes overwhelming enough to absorb the constant hedging pressure.

Until then, Bitcoin’s market may feel paradoxical: strong belief, strong demand, and yet limited upside.

This isn’t a sign of weakness in Bitcoin itself. It’s a sign that Bitcoin has entered a phase where who owns it – and how they use it – matters more than what the headlines say.


The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

Author

Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.

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