Analysis: Bitcoin Stagnates Around $90,000, Unlikely to Serve as a Hedge in the Short Term
According to Deep Tide TechFlow, on December 20, as reported by Cointelegraph, bitcoin has failed to hold the $92,000 level over the past month and is currently hovering around $90,000. Some traders believe this is due to market manipulation, while others attribute the price decline to growing concerns about the artificial intelligence industry. Another major factor limiting bitcoin's price increase is the Federal Reserve's reduction of its balance sheet for most of 2025, which is draining liquidity from financial markets. Although there are clear signs that the Fed is shifting toward a more accommodative monetary policy, traders are not certain whether the Fed can lower interest rates below 3.5% by 2026. As investor risk aversion intensifies, bitcoin is finding it difficult to serve as a hedge in the short term.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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