The cryptocurrency market is experiencing a period of deceptive calm following the latest interest rate cut from the U.S. Federal Reserve. Despite a sideways price trend, institutional investors continue accumulating assets in the background, signaling confidence in a longer-term recovery. In the near term, however, Bitcoin finds itself in a technical predicament that analysts have labeled a “liquidity sandwich.”
Institutional Accumulation Amid Corporate Strain
Large-scale investors appear undeterred by the current consolidation phase. In a significant move, MicroStrategy recently purchased an additional 10,624 Bitcoin, bringing its total holdings to a substantial 660,624 units. U.S. spot Bitcoin ETFs also saw net inflows approaching $237 million this week.
This institutional patience contrasts with pressure on other market participants. A recent report indicates that approximately 65% of companies holding Bitcoin on their balance sheets are now in an accounting loss position after the price dipped below $90,000. Smaller entities, such as Satsuma Technology, have already been forced to sell portions of their holdings to raise capital.
A Market Squeezed by Opposing Forces
Currently, the leading cryptocurrency is oscillating within a tight range between $91,000 and $95,000. The market is searching for clear direction after the Fed’s recent 25-basis-point rate cut and the expiration of options contracts worth $4.5 billion.
Should investors sell immediately? Or is it worth buying Bitcoin?
Market observers point to a dangerous compression:
* Significant short positions are clustered at the upper boundary ($94,500 – $95,000), which would face liquidation on any upward move.
* The lower boundary ($90,000 – $91,000) is supported by a concentration of long positions.
A decisive break from this zone is likely to trigger a powerful price movement. Should Bitcoin fail to maintain support at the $91,000 level, the next major technical support around $85,000 comes into view. High volatility is already evident, with over $310 million in positions liquidated within a single twelve-hour period.
Regulatory Shift Eases Banking Access
A separate development over the past 24 hours promises to bolster long-term adoption. The U.S. Office of the Comptroller of the Currency (OCC) clarified that banks can now act as intermediaries for cryptocurrency transactions without seeking special approval. This removes a significant barrier and could greatly simplify access to Bitcoin for traditional banking customers starting in 2026.
For a confirmed bullish breakout, Bitcoin needs to achieve a daily close above $95,000. Until that occurs, the risk of a pullback to the Fibonacci support level at $85,150 remains the primary concern for short-term traders.
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