TLDR
- Bitcoin traded around $89,000 on Monday, having dropped 2% last week, remaining within narrow ranges due to low trading volume.
- Exchange outflows surged by 59% between December 19 and 21, increasing from 26,098 BTC to 41,493 BTC, indicating heightened spot buying.
- The count of wallets holding at least 1,000 BTC began to rise again after a dip on December 17.
- Hong Kong’s insurance regulator put forward new regulations that would permit insurers to invest in crypto assets, subject to a 100% risk charge.
- Bitcoin faces significant resistance at $89,250 and finds support at $87,590, with potential targets reaching $96,700 if resistance is overcome.
Bitcoin was trading at $89,089.92 on Monday morning, maintaining levels close to its recent position after experiencing a 2% decrease last week. The world’s largest cryptocurrency continues to be confined to narrow trading ranges as the year-end holiday period approaches.
The digital asset has struggled to surpass the $90,000 mark throughout December. Traders attribute the subdued price action to reduced demand from institutional investment vehicles and cautious positioning ahead of the holidays.
Bitcoin has seen an approximate 5% increase over the last 30 days. However, the previous week displayed mostly flat movement with little clear direction from either buyers or sellers.
Market conditions in other sectors improved on Monday. Gold reached new all-time highs, driven by expectations of Federal Reserve interest rate cuts in 2026 following softer inflation data. Stock markets also advanced, with Asian equities and U.S. futures opening higher.
The crypto market is experiencing thin liquidity conditions, typical for the late December period. Analysts point to slowing inflows into exchange-traded funds and mixed sentiment surrounding digital assets as factors keeping prices range-bound.
Exchange Data Shows Rising Buying Activity
On-chain data indicates a significant rise in coins being withdrawn from centralized exchanges. Exchange outflows measure the amount of bitcoins moving off trading platforms, often signaling that buyers are transferring assets into self-custody.
On December 19, Bitcoin exchange outflows totaled approximately 26,098 BTC. By December 21, this figure had surged to 41,493 BTC. This represents a 59% increase in net outflows over a mere two-day span.
The spike in exchange outflows suggests that retail and mid-sized buyers are entering the market. This acceleration in spot buying activity coincides with more gradual accumulation by larger holders.
Data tracking wallets holding at least 1,000 BTC shows that the number of these entities began to increase again after a decline on December 17. This metric monitors large holders, often referred to as whales. The count has been gradually climbing since December 20, though it remains slightly below recent six-month peaks.
Hong Kong Proposes Crypto Investment Rules for Insurers
Hong Kong’s Insurance Authority is proposing regulations that would permit insurance companies to invest in cryptocurrencies and other alternative assets. The proposal, reported by Bloomberg News, comes as regulators aim to channel capital towards government priority sectors.
According to Bloomberg, the Hong Kong Insurance Authority is proposing a set of new rules to channel insurance capital into assets including cryptocurrencies and infrastructure. Under a presentation document, the regulator would apply a 100% risk capital charge to crypto assets,…
— Wu Blockchain (@WuBlockchain)
Under the proposed plan, insurers would incur a 100% risk charge on crypto asset holdings. This implies they would be required to hold capital equivalent to the full value of their crypto investments as a safeguard against potential losses.
The proposal also encompasses stablecoin investments. These would be subject to risk charges determined by the fiat currency backing the stablecoin, rather than a uniform 100% charge.
The rules were outlined in a December 4 presentation reviewed by Bloomberg. This regulatory change would signify a step towards mainstream institutional adoption of digital assets in one of Asia’s primary financial hubs.
could see something diabolical like this happening in the next few weeks. This would be the bottom imo
— Altcoin Sherpa (@AltcoinSherpa)
Bitcoin currently encounters resistance at the $89,250 level. This price point has limited upward movements since mid-December, despite multiple unsuccessful attempts to push higher. Support is established at $87,590, with additional downside levels at $83,550 and $80,530 if selling pressure intensifies.