Bitcoin (BTC) cryptocurrency struggled to hold above $90,000 on Friday as institutional money continued flowing out of spot exchange-traded funds.
U.S. spot Bitcoin ETFs recorded $825 million in outflows over five trading days ending Dec. 24.
The selling pressure came as traders attributed the withdrawals to year-end tax loss harvesting strategies and a major options expiration.
What Happened
Bitcoin futures open interest across major exchanges fell to its lowest level in eight months.
The decline followed a period of heavy liquidations as Bitcoin failed to sustain gains above $89,000.
BlackRock's IBIT led the ETF outflows with $91.37 million on Dec. 24 alone.
The five-day exodus represents less than 1% of the combined $116 billion in total ETF assets.
Gold and silver climbed to fresh all-time highs on Friday.
Spot gold rose 1.6% to peak above $4,540 per ounce, while silver advanced 7.6% to cross $77.
The precious metals rally came as investors sought protection from rising U.S. debt concerns.
Demand for government-backed debt increased, pushing yields on the U.S. 10-year Treasury to a three-week low of 4.12%.
President Donald Trump's administration said on Tuesday duties on Chinese semiconductor imports were postponed until June 2027, according to Reuters.
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Why It Matters
The Bitcoin monthly futures premium stood at 5% on Friday, unchanged from the prior week.
The basis rate has moved away from the sub-4% levels observed on Dec. 18 when Bitcoin traded below $85,000.
Bitcoin options pricing suggests stabilizing sentiment despite the ETF outflows.
The delta skew, which measures put-versus-call pricing, remained near neutral levels.
Even with softer economic activity concerns, Bitcoin continues behaving like a high-risk asset while precious metals have rallied.
The decline in futures open interest and roughly 1% net outflows from Bitcoin ETFs does not signal a sustained bear market, particularly when options metrics and the basis rate remain healthy.
A retest of the $85,000 support level remains possible.
Bulls appear to be gradually regaining confidence, even if Bitcoin fails to break above $90,000 in the near term.
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