Bitcoin Stalls Near $90K Amid Fragile Market Setup, Altcoins See Mixed Moves

Bitcoin’s relative underperformance versus equities signals weak spot demand, leaving the largest cryptocurrency exposed to macroeconomic shocks, Bitfinex analysts warned.

The asset attempted a late-weekend rally, but early U.S. trading Monday erased most of those gains, with BTC quietly hovering around $90,000 for the remainder of the day. Trading near $90,500 as U.S. stocks closed, bitcoin was down roughly 1% over the past 24 hours.

Major altcoins also struggled. Ethereum’s ETH dipped slightly but outperformed BTC, reaching its highest relative price against bitcoin in over a month. Privacy-focused Zcash (ZEC) and institutional-oriented Canton Network (CC) led the top performers with double-digit gains. The broader crypto market, measured by the CoinDesk 20 Index, fell 0.8%.

Macro conditions added to the market’s caution. Long-duration government bond yields surged, fueled by concerns over Japanese debt spilling into global markets. The U.S. 10-year Treasury yield climbed to 4.19%, a three-month high, while Japanese 10-year yields approached 2%, a level not seen in nearly 20 years. U.K. and European government bonds also sold off. U.S. equities weakened, with the S&P 500 down 0.5% and the Nasdaq 0.3%, pressuring risk appetite.

Market attention now turns to the Federal Reserve’s year-end meeting. While a 25-basis-point cut is fully priced in, signals on the broader monetary policy trajectory could trigger volatility. “Any easing in financial conditions or further weakening in the US dollar could provide tailwinds, while any hawkish surprise around policy could amplify downside pressure on crypto markets,” said LMAX strategist Joel Kruger.

Structural Weakness Persists for Bitcoin

Despite a bounce from November lows, Bitfinex analysts highlighted structural headwinds weighing on BTC. While the S&P 500 trades near record highs, bitcoin remains rangebound, underscoring a widening divergence between crypto and traditional risk assets.

Key warning signs include:

• Persistent outflows from U.S.-listed spot bitcoin ETFs, with traders selling into strength, reflected in sharply negative Cumulative Volume Delta (CVD) across major exchanges.
• Over seven million BTC are currently unrealized losses, echoing bearish sentiment reminiscent of the 2022 consolidation.
• Capital inflows, while slightly positive at $8.69 billion per month (measured by Net Realized Cap Change), remain well below peak levels, providing only modest support against downside risk.

“These factors create a fragile setup heading into year-end,” the report said. “With weakening spot demand, the market faces a significantly lighter buy-side backdrop, reducing immediate support for price and increasing sensitivity to macro shocks and further tightening in financial conditions.”