Bitcoin faces continued selling pressure, with its price falling below the $86,000 threshold on Tuesday. A clash of narratives is emerging: while macroeconomic uncertainty and significant liquidations weigh on sentiment, on-chain activity reveals a more complex picture. Behind the scenes, major institutional players are treating the dip as a buying opportunity, even as some short-term traders exit their positions.
Institutional Accumulation Amidst Market Fear
Undeterred by the price weakness, the company formerly known as MicroStrategy—now operating under the name “Strategy”—has continued its aggressive accumulation strategy. Between December 8th and 14th, the firm purchased an additional 10,645 Bitcoin for nearly one billion dollars.
The company now holds a total of 671,268 BTC, representing over 3% of the entire Bitcoin supply. Despite the recent price decline, its average purchase price remains approximately $75,000, keeping the company’s holdings in profitable territory. This move reinforces founder Michael Saylor’s well-documented tactic of using price weakness for systematic accumulation.
From Europe comes another signal of long-term institutional adoption. Germany’s Nordrheinische Ärzteversorgung (NAEV) pension fund has successfully concluded a two-year pilot phase and has formally integrated Bitcoin into its investment portfolio. The fund intends to increase its allocation to as much as 0.5% of its total assets, equivalent to roughly 85 million euros. Rather than pursuing short-term speculation, the pension chamber’s approach focuses on broad diversification across the top ten cryptocurrencies and specialized blockchain equity funds.
Should investors sell immediately? Or is it worth buying Bitcoin?
Liquidity Crunch and Macroeconomic Jitters Fuel Volatility
The world’s leading cryptocurrency is currently trading about 30% below its all-time high recorded in October. A primary catalyst for the recent sell-off is a severe liquidity squeeze within the market. In just the last 24 hours, over $470 million worth of cryptocurrency derivatives positions were forcibly liquidated, with the majority being bullish long bets.
Adding to the nervousness is the outlook for the U.S. economy. Market participants are anxiously awaiting upcoming labor market data. A report that comes in stronger than expected could dampen hopes for aggressive interest rate cuts from the U.S. Federal Reserve, thereby placing further pressure on risk assets like Bitcoin.
The short-term market mood remains tense, as reflected by a key sentiment index currently mired deep in “fear” territory. The critical technical test now is whether Bitcoin can defend the psychologically significant support level at $85,000. Holding above this line, combined with sustained institutional buying, could lay the groundwork for a price floor. Conversely, a decisive break below this support is likely to trigger a fresh wave of selling pressure.
Ad
Bitcoin Stock: Buy or Sell?! New Bitcoin Analysis from December 17 delivers the answer:
The latest Bitcoin figures speak for themselves: Urgent action needed for Bitcoin investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 17.
Bitcoin: Buy or sell? Read more here...