Bitcoin Briefly Tops $90,000 Before Retreating as $102M in Shorts Liquidated and Corporate Buyers Step In

TL;DR

• Bitcoin briefly broke above $90,000 on December 29, 2025, before retreating to the $88,000 level as equity markets weakened.
• The overnight surge of $2,600 in just four hours triggered over $102 million in short liquidations across crypto derivatives markets.
• Total crypto market capitalization reclaimed the $3 trillion mark with an $80 billion jump during the Asian trading session.
• Corporations added 42,000 BTC in December — the largest accumulation by digital asset treasury companies since July 2025.
• Traders are positioning for a potential New Year rebound as the “Santa rally” that lifted equities to records bypassed Bitcoin.

Bitcoin is putting on a volatile show in the final trading days of 2025, briefly breaking above the psychologically important $90,000 mark on December 29 before giving back gains as the session progressed. The flagship cryptocurrency touched $90,000 during early Asian trading hours, driven by a sudden burst of buying pressure that added $2,600 to Bitcoin’s price in just four hours. The move caught leveraged bears off guard, triggering over $102 million in short liquidations across crypto derivatives markets as the rally gathered pace.

The \$90,000 Barrier Proves Stubborn

Despite the impressive intraday spike, Bitcoin failed to sustain its position above $90,000 — a level that has served as a magnet and resistance point throughout December. By the European trading session, the price had retreated below $88,000 as Nasdaq futures wilted and risk appetite soured across global markets. The pattern is a familiar one for Bitcoin watchers this month: repeated tests of the $90,000 level followed by decisive rejections, creating a consolidation range that has trapped traders on both sides of the market.

According to Bloomberg, traders are increasingly betting on a New Year rebound, noting that Bitcoin missed the so-called Santa rally that sent equity markets to record highs in late December. The divergence between crypto and traditional markets has been a defining feature of the past several weeks, with the S&P 500 and Nasdaq Composite posting gains while Bitcoin has struggled to maintain upward momentum. The Investing.com report from December 29 described trading conditions as “subdued” with year-end volume contributing to choppy, directionless price action.

Short Liquidations Signal Shift in Sentiment

The $102 million in short liquidations that accompanied the early-morning surge represents a significant event in the derivatives market. Liquidation cascades occur when leveraged positions are forcibly closed as prices move against traders, and they often amplify price movements by creating a feedback loop of forced buying. CoinPedia reported that the total crypto market capitalization jumped by $80 billion during the four-hour surge, reclaiming the key $3 trillion level and signaling that broad-based buying — not just Bitcoin-specific demand — was driving the market.

The liquidation data suggests that a substantial number of traders had positioned themselves for further downside, perhaps emboldened by Bitcoin’s failure to sustain gains above $90,000 in previous attempts. When the buying pressure materialized, these positions were quickly wiped out, contributing to the velocity of the upward move. The episode underscores the heightened leverage in crypto derivatives markets as 2025 comes to a close, with open interest in Bitcoin futures remaining elevated despite the choppy spot market.

Corporate Accumulators Buy the Dip

While ETF investors have been net sellers in recent weeks, corporate Bitcoin treasury companies — sometimes referred to as digital asset treasuries (DATs) — have stepped in aggressively. VanEck’s mid-December ChainCheck report revealed that corporations added 42,000 BTC in December, marking the largest accumulation by this cohort since July 2025. The buying has provided a critical backstop for Bitcoin’s price, absorbing selling pressure from ETF outflows and miner distributions.

The corporate buying represents a structural shift in Bitcoin’s demand profile. Unlike ETF investors, who may be more sensitive to short-term price movements and macroeconomic conditions, corporate treasury buyers tend to operate on longer time horizons and are often motivated by strategic balance sheet considerations. The 42,000 BTC accumulated in December is worth approximately $3.7 billion at current prices — a staggering commitment that underscores the growing institutional conviction in Bitcoin as a treasury reserve asset.

Miner Capitulation Provides Contrarian Signal

The backdrop to Bitcoin’s price action includes a notable decline in the network hash rate, which has fallen roughly 4% on a 30-day basis — the sharpest drop since the April 2024 halving. VanEck and other analysts have flagged this as a historically bullish contrarian signal. When miners capitulate and shut down unprofitable operations, it reduces the network’s selling pressure (miners sell BTC to cover operational costs) and triggers difficulty adjustments that make remaining miners more profitable.

The hash rate decline from approximately 1,160 EH/s in early October to around 1,045 EH/s in late December represents a nearly 10% reduction. CoinDesk attributed part of the decline to mining machine shutdowns in China, while The Miner Magazine noted that the difficulty adjustment has held relatively firm, suggesting the network is absorbing the stress without a catastrophic unraveling. For long-term Bitcoin holders, the miner capitulation narrative adds weight to the thesis that the current price range represents an accumulation opportunity rather than the beginning of a deeper bear market.

Ethereum and Altcoins Track Bitcoin’s Volatility

The broader crypto market has largely followed Bitcoin’s lead on December 29, with Ethereum trading modestly higher and Solana hovering around the $125 level. Altcoins have shown mixed performance, with some tokens posting gains on protocol-specific catalysts while others have drifted lower in sympathy with Bitcoin’s retreat from $90,000. The total crypto market’s recovery of the $3 trillion capitalization level is encouraging for bulls, but the failure to hold above that threshold in recent weeks suggests that conviction remains thin heading into the New Year.

XRP has been a notable outperformer in recent sessions, buoyed by ongoing developments in its legal battle with the SEC and growing adoption in cross-border payments. Meanwhile, the DeFi sector continues to see steady total value locked, suggesting that on-chain activity remains robust despite the spot market volatility. The staking sector, in particular, has drawn interest from yield-seeking investors who are looking to generate returns while waiting for directional clarity in the market.

Why This Matters

Bitcoin’s battle at $90,000 on December 29 encapsulates the competing forces that will define the crypto market heading into 2026. On the bearish side, ETF outflows, miner capitulation, and the failure to sustain breakout levels suggest that selling pressure remains significant. On the bullish side, aggressive corporate accumulation, historical precedent for hash rate declines preceding price recoveries, and the massive short liquidation event indicate that demand is building beneath the surface. The $3 trillion total crypto market cap recovery and the $102 million in liquidated shorts demonstrate that the market retains the capacity for explosive moves in either direction. As institutional infrastructure continues to mature — from corporate treasuries to liquid staking protocols — the market’s foundation grows stronger even as short-term price action remains choppy. The stage is set for an eventful start to 2026, with traders and investors alike watching whether Bitcoin can finally break free of its month-long consolidation range.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk, including the potential for total loss of capital. Past performance is not indicative of future results. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.