Bitcoin Breaks $90,000 Barrier as US Trading Hours See Reversal in Selling Pressure
Bitcoin broke the psychological $90,000 barrier on Friday, trading at $90,742 (+3.2%) during the New York session, effectively snapping a Q4 2025 trend where U.S. trading hours were dominated by selling pressure. This significant milestone marks a turning point in the market, as the reversal reflects the end of end-of-year tax-loss harvesting that drove Bitcoin down 23% in Q4. According to experts, the end of tax-loss harvesting is a major factor contributing to the recent price surge.
The buying volume accelerated at 09:30 ET, contrasting sharply with the “4 p.m. sell-off” pattern observed throughout December. CoinGlass data show futures open interest jumped 2.16% to $130 billion in the last 24 hours, indicating renewed leverage appetite. This increase in open interest suggests that investors are becoming more confident in the market, leading to increased trading activity.
The Floor & The Flows
MicroStrategy (MSTR) likely established the local floor. The firm disclosed on Dec. 29 that it had purchased 1,229 BTC at an average price of $88,568, defending the range ahead of the New Year. This move by MicroStrategy demonstrates the company’s commitment to Bitcoin and its potential to influence market prices. Miners are front-running the risk-on shift, with Hut 8 outperforming the spot market, rallying nearly 15% to $50.73.
According to Riya Sehgal, Research Analyst at Delta Exchange, “The crypto market opens 2026 on a balanced note, driven by renewed institutional interest, clearer regulations, faster ETF approvals by the SEC, and the GENIUS Act’s stablecoin framework, which have boosted confidence, even as most inflows remain concentrated in Bitcoin and Ethereum.” This sentiment is reflected in the market, as U.S. spot ETFs and proxies, such as Coinbase (+3%), caught a bid.
Market Outlook
Despite the rally, prediction markets remain cautious. Polymarket bettors currently assign only 26% odds to Bitcoin exceeding $150,000 in 2026, favoring a consolidation year. Immediate resistance sits at the Q4 2025 breakdown level of $92,500. The headline isn’t the price; it’s the timing. Throughout Q4 2025, U.S. liquidity was the exit liquidity—consistent selling during NY hours to harvest losses.
Friday’s price action confirms that the “tax drag” is gone. Desks should monitor the ETH/BTC ratio ($0.034); if U.S. institutions are truly risk-on, expect rotation into high-beta alts and miner equity to outpace spot BTC in the short term. As the market continues to evolve, it’s essential to stay informed about the latest developments and trends. For more information, visit the original source: https://cryptonews.com/news/bitcoin-reclaims-90k-us-bid-returns/
