US-listed spot Bitcoin ETFs have shown net outflows in recent days, and that pull of money has added pressure to a market already under strain. According to CoinMarketCap, Bitcoin traded around $88,750 at the time of recent reports, down about 27% from its all-time high of $125,100 hit on Oct. 5.
Reports have disclosed that a record-sized Bitcoin options expiry landed on Friday, Dec. 26, and several analysts say that event effectively “pinned” price into a narrow range — at least until volatility returns.
Market Flows And Options Pressure
According to multiple sources, outflows from major spot ETFs removed a key support for price that helped push Bitcoin higher earlier this year. The Crypto Fear & Greed Index has been in “Extreme Fear” since Dec. 12, which shows how fragile sentiment remains despite product and policy gains.
Options expiries of this size can concentrate bets and push price toward strike clusters. When those contracts roll off, the market often needs a new catalyst to move beyond the band it’s been stuck in.
Strong Fundamentals
Executives managing large Bitcoin treasuries argue fundamentals are solid even as price drops. Strategy CEO Phong Le told a podcast that the market’s long-term picture looks strong and that short-term moves “do what they do.”
“The fundamentals of the market for Bitcoin couldn’t be better this year,” Le said, pointing out that he doesn’t care too much about its short-term performance.
Reports note that Strategy’s market value relative to its Bitcoin holdings, mNAV, has fallen below 1 and sits at 0.93 according to Saylor Tracker. The company’s balance shows 671,268 Bitcoin, with an estimated value of about $58 billion. Those figures underline how a decline in spot price can quickly reshape the math for firms that hold Bitcoin on their books.
BTCUSD trading at $88,815 on the 24-hour chart: TradingView
Traditional Banks Trying To Catch Up
Le and Strategy’s executive chairman Michael Saylor have been meeting with banks across the US and the UAE, based on his comments, as institutions seek how to adjust to growing client demand and new product types.
According to reports, Galaxy Digital researcher Alex Thorn had said earlier in the year there was a “strong chance” the US government would signal a formal reserve move. US President Donald Trump signed an executive order in March establishing a Strategic Bitcoin Reserve and a US Digital Asset Stockpile, although a fully detailed plan has not been released.
Policy Signals And Market Reaction
Policy support is a clear positive, yet markets do not always respond immediately to regulatory shifts. Signals can lower legal risk and widen access, but they do not always create instant buying. The mNAV reading below 1, plus ETF outflows and a fear reading stuck at “Extreme Fear,” shows there is skepticism about when that demand will arrive. Some players remain methodical, building dollar and Bitcoin treasuries and relying on model-based rules rather than emotion.
Based on reports and market indicators, the picture is mixed. Long-term commitments from firms and clearer policy language point to stronger structural backing. At the same time, short-term flows, options dynamics, and entrenched fear mean price can stay volatile and range-bound. Investors watching both the fund flows and policy calendar will likely decide which signal matters more next.
Featured image from World, chart from TradingView
