Bitcoin back above $92K as ETF flows, tokenization talk, and prediction markets shape the week
Bitcoin traded back above $92,000 during Monday’s Asia session after briefly dipping below $90,000, as traders weighed expectations of a Federal Reserve rate cut alongside broader risk jitters tied to AI-linked equities. Altcoins continued to lag the move in bitcoin.
The latest swing lower accelerated after a $92 million liquidation of bullish leveraged bitcoin futures, underscoring how derivatives positioning can amplify short-term volatility even when the broader trend remains supported by institutional demand.
By mid-week, bitcoin was again holding the $92,000 level. Data cited by TechStock² put bitcoin up 3.09% to $92,559.73 on December 10, while noting that liquidity indicators were not yet showing full conviction: bitcoin’s bid-ask ratio has remained “relatively low and inconsistent,” compared with November’s sharp drop from $100,000 to $80,000 when the ratio turned positive as large bids absorbed selling.
A central pillar of the rally remains the U.S. spot Bitcoin ETF market. BlackRock’s iShares Bitcoin Trust has grown into one of the largest holders of bitcoin, with more than 773,000 BTC, highlighting the scale of institutional access created by spot ETF products.
Flows, however, have been mixed. CryptoNews reported that U.S. spot Bitcoin ETFs recorded about $60.5 million in net outflows on Monday, pulling cumulative net inflows back to $57.65 billion. Even so, BlackRock’s fund still drew new money while Grayscale and other issuers saw withdrawals. Separately, figures cited in the roundup said BlackRock’s Bitcoin ETF was the week’s largest contributor with $214.1 million in inflows, and that the spot ETF category logged inflows on three days of the week, with only two sessions negative.
Alongside ETFs, several institutional and policy signals helped define the broader backdrop:
- SEC: The Securities and Exchange Commission published a crypto custody bulletin aimed at investors.
- Itaú Asset: The firm recommended investors allocate 1% to 3% of portfolios to bitcoin next year.
- CFTC: The agency announced a pilot program and guidance for tokenized collateral, explicitly naming assets such as BTC, ETH, and USDC in a derivatives-collateral context.
Tokenization also returned to the spotlight after BlackRock CEO Larry Fink predicted “enormous growth” in crypto-based tokenization in coming years. NYDIG, however, offered a more cautious framing, saying tokenization will not meaningfully benefit crypto “until assets are freed up,” pointing to structural and market plumbing constraints that can limit immediate impact.
Outside core crypto markets, prediction markets continued their rapid expansion in 2025. Kalshi and Polymarket have grown quickly, and Kalshi’s valuation more than doubled to $11 billion following its latest funding round. Reuters also reported the launch of a national coalition including Crypto.com, Kalshi, Coinbase, Robinhood, and others, aimed at setting integrity standards and advocating for a clearer U.S. federal framework—drawing attention to the overlap between crypto platforms and regulated event/outcome markets.
Over the past two weeks, bitcoin has repeatedly revisited the $90,000 area as retail sentiment improved, fund managers reiterated constructive views on year-end conditions, and Strategy announced a sizable bitcoin purchase. VanEck’s head of digital asset research, Matthew Sigel, cited Bernstein’s view that bitcoin’s market cycle has shifted into an “elongated bull-cycle” with “more sticky institutional buying” potentially offsetting retail-driven swings. Bernstein’s comments followed Fink’s remarks that sovereign wealth funds were “incrementally” buying bitcoin after it fell from a prior $126,000 peak.
For now, the price action reflects a market balancing strong spot demand—particularly through ETFs—against uneven liquidity signals and the ongoing sensitivity of leveraged positioning to macro headlines.