Crypto Fear Peaks on Christmas as Bitcoin Slides Below $87,000 Amid ETF Outflows

Company XWIN Finance data showed that Bitcoin briefly slipped below $87,000 during thin Christmas Day trading on December 25, driven by persistent ETF outflows and weak holiday liquidity. The firm's Trend Index placed the market in a "mild downtrend" with a score of 34/100, highlighting U.S.-session selling and steady withdrawals from spot Bitcoin ETFs as primary short-term drags.

Spot ETFs reportedly saw roughly 2,900 BTC (about $251 million) exit funds in the most recent session, a continuation of the wider pattern that has trimmed cumulative ETF-derived demand. Company CryptoPotato reported that net BTC ETF inflows have fallen by nearly $6 billion since their October peak. Ethereum-focused funds mirrored this weakness, staying net negative on a weekly basis despite short-term bounces. By contrast, some alternative products — notably Solana and XRP-related ETFs — registered inflows, with XRP funds adding roughly $8 million in the latest session.

Price action has been muted but fragile. At the time of the report, Bitcoin traded just under $88,000, about 1% higher on the day and week but still nearly 20% lower over three months. The market's 24-hour range hovered between $87,000 and $88,000, while the prior week’s swings extended from roughly $85,000 to just over $90,000. Repeated attempts to reclaim the $88,000–$89,000 band stalled, an area described by Company XWIN Finance as heavy resistance shaped by concentrated options positioning.

On-chain indicators, however, paint a more nuanced picture beneath headline weakness. Company XWIN Finance noted that whale exchange inflows over the past 30 days are near cycle lows and that Coin Days Destroyed (CDD) continues to fall — a sign that long-term holders are slowing sales. At the same time, spending from extremely old Bitcoin cohorts has ticked higher, a pattern sometimes observed near major turning points. Network activity remains soft, suggesting that demand has not yet returned with conviction.

Sentiment gauges further underline the tension: the Fear & Greed Index sat in "Extreme Fear" at 24, and DeFi borrowing has declined sharply since August, indicating reduced leverage in the system. Despite this, stablecoin supply climbed to a record near $310 billion, pointing to significant pools of sidelined capital that could fuel future rallies if risk appetite returns.

Macro conditions add complexity. With equities and gold near record highs and rate expectations tilting toward a January pause, macro is not overtly hostile — yet for crypto the next meaningful move likely hinges on ETF flow dynamics and post-expiry options adjustments. Until decisive shifts in those drivers occur, Company XWIN Finance suggests the market may remain fragile, with compressed volatility and the looming risk of sharp, liquidity-driven wicks.

Editor’s note: Traders should watch ETF flows, options expiries, and stablecoin deployment closely. Short-term risk management and awareness of heavy resistance zones between $88,000 and $89,000 remain essential as on-chain signals show seller exhaustion but not yet a return of broad demand.