Bitcoin's $90,000 barrier was regained and then lost again, investors reduced holdings in tech stocks before the end of the year

Due to traders reducing their bets on tech giants before the end of the year, the three major US stock indices all declined, and gold and silver retreated from their historical highs. Bitcoin (BTC) briefly touched $90,406 in early trading yesterday before pulling back, currently oscillating around 87K. The market lacks further bullish catalysts, and with most investors exiting during the year-end long holiday, market sentiment has become more cautious.

The three major US stock indices all declined, with investors reducing holdings in tech stocks before the New Year

Investors sold some of this year’s big winners in tech stocks, including NVIDIA, Tesla, and Oracle, leading to light trading ahead of the holiday break.

The S&P 500 has risen about 17% so far this year. Although its performance lags behind many other global indices, it still exceeded expectations of a sell-off triggered by tariffs.

The market generally remains optimistic, believing that after three consecutive years of gains, the stock market will continue to strengthen into 2026. Despite risks such as potential stagnation in AI development and unexpected policy shocks, according to analyst forecasts compiled by Bloomberg, the average increase of the S&P 500 next year is projected to reach 9%.

On Tuesday, traders will focus on housing price data released at 9 a.m. Eastern Time. The Federal Reserve’s December meeting minutes are also highly anticipated. The market will be closed on Thursday (New Year’s Day).

Bitcoin’s $90,000 milestone was regained and lost again, with investors selling BTC for tax purposes

Bitcoin (BTC) failed to sustain its strong rally at the end of 2025. It briefly touched $90,406 in early trading yesterday before pulling back, currently oscillating around 87K. The market lacks further bullish catalysts, and with most investors exiting during the year-end long holiday, market sentiment has become more cautious.

The crypto market declined 0.51% yesterday, with a total market cap of $2.96 trillion. Bitcoin and Ethereum experienced brief rebounds after Christmas but faced resistance near $90,000 and $3,000 respectively, with failed breakouts triggering $160 million in long liquidations.

The fear and greed index slightly rebounded but remains near the lower end of the fear zone. Bloomberg columnists believe that the price decline of Bitcoin at the end of 2025 provides a rare and highly attractive “tax-loss harvesting” opportunity for US crypto investors. Selling Bitcoin at year-end can effectively offset annual capital gains and even reduce some ordinary income.

(Why did Bitcoin fall at the end of the year? US investors take advantage of tax-saving strategies)

This article, “Bitcoin’s $90,000 milestone regained and lost again, investors reducing tech holdings before the year-end,” first appeared on Chain News ABMedia.