BTC Hits $90k on Institutional Accumulation, Liquidity Influx
Bitcoin (BTCUSD) crossed $90k on Monday due to institutional accumulation and a liquidity boost by the U.S. Federal Reserve acting as a catalyst for the fresh momentum.
With buying interest in top cryptocurrencies, the market value of all cryptocurrencies surged to $3.04 trillion at the press time. The crypto market had dipped below $3 trillion due to sell pressures.
The world’s largest crypto rally reflects institutional accumulation overpowering regulatory-driven outflows, with technical reinforcement of bullish momentum.
Bitcoin reclaimed its pivot point during early trading hours, hovering above $90k, and saw a bullish MACD crossover. A crypto analyst said a close above $91,979 could target $94,600, noting that the level had acted as resistance for the uptrend.
Trading data from CoinMarketCap.com showed that Bitcoin price has increased by about 2% to $90,260 in the past 24 hours, outpacing the crypto market’s 1.28% gain.
BlackRock deposited 1,200 BTC worth $108 million and 10,000 ETH into Coinbase Prime, signalling strategic institutional accumulation. This aligns with its spot Bitcoin ETF (IBIT), which has driven $3.6 billion in inflows this year
Long-term holders are accumulating near $90K, but the Fear & Greed Index reflects lingering caution with derivatives data shows a 17,128% long/short liquidation imbalance, suggesting leveraged traders are chasing momentum.
Open positions are expected to remain, supported by U.S Federal Reserve latest liquidity boost. The Federal Reserve injected $6.8 billion via repurchase agreements this week, part of a broader $38 billion liquidity surge over 10 days.
This follows the end of quantitative tightening and a dovish rate cut, aligning with Bitcoin’s 7.65% 30-day gain. Analysts link the liquidity influx to improved risk appetite, though thin holiday trading volumes may amplify volatility.
With its increased trading volume, BTC trades at about 30% below its October 2025 all-time high of $126K and sees $69K–$74K as a critical support zone.
Bitcoin’s trajectory balances Fed-driven liquidity, institutional scarcity, and macroeconomic scepticism. While the $90K breakout signals strength, the market faces a tug-of-war between ETF inflows and leveraged speculation. U.S. banks are now allowed to handle cryptocurrencies, marking a significant change that could fuel the next rally. First Holdco Delivers 62% YTD Return, Downgrades to Sell
