Bitcoin (BTC) traded around $88,600 on January 2 as the cryptocurrency remained range-bound between $85,000 and $90,000.

The total cryptocurrency market capitalization reached $3.08 trillion, up 1.2% from the previous day.

Bitcoin spot ETFs recorded their worst two-month stretch with $4.57 billion in combined outflows through November-December.

The cryptocurrency gained approximately 1.3% over 24 hours following a volatile end to 2025.

What Happened

Bitcoin's price has consolidated within a tight $85,000-$90,000 range for two weeks.

U.S. spot Bitcoin ETFs registered $348.1 million in net outflows on December 31.

The 11 spot ETFs posted $1.09 billion in December outflows following $3.48 billion in November outflows.

This marked the largest two-month redemption since the products launched in January 2024.

Bitcoin's price dropped approximately 20% during the November-December period coinciding with ETF outflows.

Ethereum (ETH) traded near $3,000, gaining 1.5% over 24 hours.

Altcoins showed stronger percentage gains with Cardano (ADA) rising 6.3% and Dogecoin (DOGE) climbing 7.1%.

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Why It Matters

The record ETF outflows reflect declining institutional appetite heading into year-end despite Bitcoin ending 2025 approximately 6% lower.

Market volatility measured by Bollinger Bands narrowed to its lowest level since July, suggesting a potential significant price movement ahead.

Total Bitcoin ETF net assets stood at $113.29 billion on December 31, down 33% from an October peak of $169.54 billion.

Despite late-year outflows, Bitcoin ETFs accumulated cumulative net inflows of approximately $56.9 billion since their January 2024 launch.

Analysts suggest the consolidation represents institutional positioning rather than panic selling as markets await fresh catalysts in 2026.

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