Bitcoin will return to 90,000 before the end of 2025! Analyst: The rally lacks liquidity, and it is expected to consolidate at the beginning of the new year.

Bitcoin briefly retreated after surpassing $90,000 at the end of 2025, affected by thin liquidity and tax operations at year-end. Analysts estimate that the phenomenon of thin liquidity will continue into early January, and the market will remain consolidating at the beginning of the new year.

Bitcoin Reclaims $90,000 Before 2025 Ends, Market Sentiment Begins to Stabilize

As 2025 draws to a close, Bitcoin briefly re-entered the $90,000 threshold yesterday (12/29), but then quickly retreated, and by this morning’s trading, it had stabilized around $87,000.

Regarding the short-term upward movement of Bitcoin, Presto Research research assistant Rick Maeda told The Block that Bitcoin’s ability to return to $90,000 seems mainly driven by technical factors rather than a single new bullish catalyst.

He explained that $90,000 was a clear resistance zone before, and if it can rebound and reclaim that level, it could trigger a short squeeze, where short sellers cover their positions, leading to rapid price increases and momentum-driven buying.

Image source: CoinMarketCap Bitcoin re-entered the $90,000 threshold yesterday (12/29), but then quickly retreated

Kronos Research CEO Vincent Liu also stated that after a period of consolidation, key price levels have turned into support, prompting a technical rebound.

He further observed market sentiment, noting that the Crypto Fear & Greed Index has shifted from “Extreme Fear” in mid-December to “Fear,” indicating initial signs of market confidence stabilizing, which helps build upward momentum in an environment of thin liquidity.

• What is the Crypto Fear & Greed Index? Real-time queries and trading timing guide

Thin liquidity amplifies volatility, Bitcoin surges suddenly

Although Bitcoin’s price surged at times, the overall market remains subdued due to year-end factors.

Bitrue research director Andri Fauzan Adziima pointed out that this wave of Bitcoin’s upward momentum partly reflects technical relief after options expiration and the correlation driven by altcoins.

However, most of December, Bitcoin traded within the $86,500 to $90,000 range, mainly due to a $1 billion outflow from spot ETFs, related to year-end tax-loss harvesting for tax deductions and broad risk-off operations.

Additionally, Maeda analyzed that as many market participants close for Christmas holidays, year-end market liquidity becomes thin, making prices more sensitive to relatively small capital flows.

Thin liquidity is expected to persist into January, with $90,000 as a key resistance

Looking ahead to the new year, traders will closely monitor whether Bitcoin can hold above $90,000 at daily closing, and the thin market liquidity is expected to continue into early January.

According to analysis by Cointelegraph, for a sustained rebound, the market needs increased demand pressure and signs of spot ETF capital inflows.

Since Bitcoin currently holds support at $84,000, if it can successfully recover the $90,000 to $92,000 range, upward momentum should begin to return.

Adziima also added that after entering 2026, market focus will shift to whether ETF capital flows rebound in January, progress in international crypto regulation (such as the implementation of MiCA law), and the Federal Reserve’s policy moves. If catalysts emerge, a new institutional-driven market phase could begin.

Further reading:
Fidelity warns: Bitcoin will enter a bear market in 2026! Key support level revealed: Halving cycle ends