Trading

Bitcoin declined sharply after economic growth warnings triggered a wave of liquidations in derivatives markets, producing an 11,588% imbalance between long and short positions. Long positions accounted for over $115 liquidated for every $1 in shorts, data show. The selloff followed remarks suggesting first-half growth would miss expectations, prompting rapid exits from leveraged positions.

BlackRock's iShares Bitcoin Trust recorded more than $2.7 billion in withdrawals across five consecutive weeks ending November 28, marking its longest outflow period since launching in January 2024. The fund, which manages over $71 billion in assets, logged an additional $113 million in redemptions on Thursday. Data show the outflows accelerated following a crypto market liquidation in early October that eliminated more than $1 trillion in digital asset value.

U.S. spot XRP exchange-traded funds recorded $12.84 million in net inflows on December 5, extending their growth streak to 13 consecutive trading days. Cumulative inflows have reached $887.12 million since the mid-November launch, with the funds collectively holding more than 400 million tokens. XRP traded at $2.07, down more than 3% on the same day, despite the sustained institutional interest.

Bitcoin declined to $92,000 following a -32% drawdown from its all-time high, marking the steepest correction in the current cycle. On-chain data shows the P/L Score has remained in the -3 zone since November 6, a level historically associated with bearish market regimes and extended correction phases.

JPMorgan analysts project the U.S. stablecoin market will grow to approximately $700 billion in the coming years, significantly below the White House's $2-4 trillion target for 2028-2030. Teresa Ho, Head of U.S. short-duration strategy at JPMorgan, expressed doubt about rapid multi-trillion dollar expansion despite positive momentum following the GENIUS Act. The sector surpassed $300 billion in total market supply after the legislation passed in July.

JPMorgan analysts said on December 4 that MicroStrategy's financial stability holds greater influence over Bitcoin's short-term trajectory than recent miner selling activity. The firm's Managing Director Nikolaos Panigirtzoglou noted that MSTR's enterprise value-to-bitcoin holdings ratio of 1.13 provides market reassurance despite declining hashrate and operational pressures on miners.

U.S. spot bitcoin exchange-traded funds recorded net outflows of $194.6 million on Thursday, marking the largest single-day withdrawal in two weeks, data show. BlackRock's IBIT led outflows with $112.9 million, while Fidelity's FBTC saw $54.2 million in withdrawals. Trading volume for these products declined to $3.1 billion from $4.2 billion the previous day.

Bitcoin is maintaining support near $92,000 as technical indicators show weakening bearish momentum. Market sentiment received support from two developments: Binance co-founder CZ challenged gold advocate Peter Schiff to verify a gold bar's authenticity at Binance Blockchain Week, while Bitwise CIO Matt Hougan dismissed concerns that Strategy might be forced to liquidate its Bitcoin holdings.

Approximately 37,000 Bitcoin options contracts with a notional value of $3.4 billion expire on December 5, with a put/call ratio of 0.94 indicating balanced positioning between bulls and bears. Ethereum options worth $667 million also expire the same day, bringing total cryptocurrency options expiry to approximately $4 billion. Max pain for Bitcoin is estimated at $91,000, while the highest open interest concentration sits at the $100,000 strike price.

BlackRock CEO Larry Fink said sovereign wealth funds purchased Bitcoin during its recent decline below $90,000. Speaking at the New York Times DealBook Summit on December 4, 2025, Fink said these state-backed investors bought incrementally at $120,000 and $100,000, then increased purchases when Bitcoin fell into the $80,000 range. He said these institutions are building long-term positions rather than trading.