Bitcoin traded within a narrow corridor over the weekend, fluctuating between $92,000 and $93,000. This tentative stabilization follows a Friday dip to $88,000, yet market sentiment remains decidedly fragile. The prevailing tension stems not only from recent price declines but is heavily focused on the impending interest rate decision from the U.S. Federal Reserve scheduled for December 9-10.
Divergent Signals Emerge from Blockchain Data
On-chain metrics reveal a market at odds with itself. Analysis of the Spent Output Profit Ratio (SOPR) indicates that some investors are currently selling at a loss, a pattern often associated with localized market bottoms. Countering this, a notable trend has emerged among larger holders: the number of wallets containing at least 1,000 BTC has climbed from approximately 1,350 to 1,450 within a single month. This suggests that major addresses, often called “whales,” are using the price weakness to accumulate more coins.
Concurrently, broader network participation is waning. The daily count of active entities on the Bitcoin network has dropped from around 240,000 to 170,000, pointing to reduced engagement from retail-scale investors.
Should investors sell immediately? Or is it worth buying Bitcoin?
A Shift in Institutional Flows
After experiencing substantial outflows in November, estimated between $3.8 and $4.3 billion, U.S. spot Bitcoin ETFs have seen a tentative reversal in early December. Preliminary data for the most recent trading sessions shows net inflows of roughly $70 million. This shift implies that institutional players may view prices below the $90,000 threshold as an attractive entry point.
Regulatory Progress Provides a Backdrop
Amidst these price movements, regulatory clarity is advancing in key jurisdictions. The UK Parliament passed legislation on December 2 formally recognizing cryptocurrencies, including Bitcoin, as personal property. Across the Atlantic, the U.S. Congress is drafting bills, namely the CLARITY Act and the GENIUS Act, aimed at establishing a more defined regulatory framework for digital assets.
The current reading of the Crypto Fear & Greed Index stands at 25, squarely in the “Extreme Fear” zone. Historically, such extreme sentiment readings have frequently coincided with interim market lows. Whether Bitcoin can maintain its footing above the psychologically significant $90,000 level will likely be determined in the coming week, as markets react to the Federal Reserve’s policy announcement.
Ad
Bitcoin Stock: Buy or Sell?! New Bitcoin Analysis from December 6 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 6.
Bitcoin: Buy or sell? Read more here...