Bitcoin Retreats Below $90K Amid Wall Street Return; 35K BTC Flows Out of Exchanges in Two Weeks

Bitcoin slipped beneath the $90,000 threshold as traditional markets reopened on Monday, signaling renewed selling interest from US-based traders. The largest cryptocurrency, currently trading near $92.16K, continues to demonstrate pronounced price swings as institutional and retail participants navigate uncertain market conditions.

The Price Pressure Intensifies as Trading Week Begins

BTC made a strong push toward $92,000 during early Asian trading but surrendered gains once Wall Street came online. Analysts flagged the inability to retest the year-open level of $93,500 as a critical failure point, with $86,000 emerging as the final support threshold should downside pressure persist.

Crypto trader Michaël van de Poppe emphasized the importance of patience during volatile sessions, noting that Bitcoin faced rejection at key resistance levels even as alternative coins posted notable gains. Should the market fail to establish a higher low, a broader liquidation sweep could test these lower support zones.

Liquidations Remain Controlled Despite Volatility

Despite the price swings, the broader liquidation picture has stayed relatively contained. Cross-crypto liquidations reached approximately $330 million over a 24-hour window, reflecting surprisingly modest levels given the price movement intensity. This suggests traders have already reduced their leveraged exposure, with many staying sidelined while awaiting clearer directional signals.

QCP Capital noted in its latest market analysis that reduced positioning across the industry indicates fatigue or uncertainty among market participants, rather than aggressive capitulation.

The Supply Shift: 35K BTC Leaves Exchange Hands

One of the most significant developments occurred on the supply side, where approximately 35,000 BTC departed exchange wallets over a two-week period, according to onchain analytics from Glassnode. This massive withdrawal reflects a structural shift in how Bitcoin is being held and managed.

Corporate treasuries and Bitcoin ETFs have collectively accumulated more Bitcoin than exchanges currently custody, marking a watershed moment for the asset’s distribution. This “supply migration” toward longer-term holding structures has dramatically compressed available liquidity, leaving the market with considerably less depth at critical price levels.

Liquidity Tightening as Year-End Approaches

The combination of reduced exchange inventory and year-end liquidity patterns has created a precarious setup. Even moderate trading volumes can now generate outsized price moves, as the actual float available for transactions continues contracting.

Ethereum exhibits a similar pattern, with exchange balances touching decade lows—evidence that the broader cryptocurrency market is consolidating supply away from trading venues into secure, long-term custody arrangements.

This structural tightening raises important questions about market depth heading into the final weeks of the year, particularly as the crypto ecosystem continues navigating macroeconomic uncertainty and changing investor sentiment.