Bitcoin Stalls at $96K Despite $5.1B Long Positions: Market Manipulation or Natural Consolidation?
In an intriguing market development, Bitcoin (BTC) continues to trade in a narrow range around $96,000, despite significant institutional inflows and growing state-level adoption. Market experts and analysts are increasingly questioning the unusual price action, suggesting potential market manipulation while states like Montana push forward with Bitcoin reserve legislation.
“Manufactured” Trading Pattern: Industry Leaders Question Bitcoin’s Tight $92K-$106K Range
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Speaking at Consensus Hong Kong 2025, Jan3 CEO Samson Mow expressed worries about possible price suppression in the Bitcoin market, pointing out that the current trading pattern seems “manufactured.” Mow noted that the tight trading range of the cryptocurrency seems unnatural given the significant buying pressure from institutional investors and retail players.
Since December 18, the market has seen Bitcoin trading between $92,400 and $106,500; just a small trip to $109,000 following the U.S. presidential inauguration in January. Despite U.S. spot Bitcoin ETFs and corporations like MicroStrategy regularly buying “multiple of the Bitcoin mined every day,” this sideways motion results.
Leveraged Positions Hit Record High: Bitfinex Traders Accumulate $5.1B in Long Exposure
With Bitfinex Bitcoin leveraged long holdings reaching $5.1 billion, the market is seeing a notable shift. This significant rise hasn’t shown up in price momentum, though, which suggests these positions might be completely hedged via spot ETFs or derivatives. The appealing 0.44% yearly interest rate of the platform has probably helped to create chances for market-neutral arbitrage techniques, which have helped to construct this accumulation.
Montana Joins Bitcoin Reserve Movement: Fourth US State to Advance Digital Asset Bill
BTC/USD price action is still limited, but institutional adoption keeps developing at the state level. After Utah, Arizona, and Oklahoma, Montana is now the fourth U.S. state advancing a Bitcoin reserve law to the House. Passed by Montana’s House Business and Labor Committee in a 12-8 vote, House Bill No. 429 would establish a special revenue account for investing in digital assets with market caps above $750 billion – a condition presently met only by Bitcoin.
BTC/USD Technical Analysis: Imminent Breakout as Bollinger Bands Reach Critical Level
Despite the current consolidation, several technical indicators suggest a potential breakout is imminent:
- The Bollinger Bands have reached their tightest levels since Bitcoin was at $68,000 in November 2024
- Historical patterns suggest similar conditions preceded significant rallies of 46% and 94% in previous instances
- Support levels remain strong at $89,000, coinciding with U.S. spot Bitcoin ETF investors’ cost basis
CryptoQuant CEO Ki Young Ju maintains a bullish outlook, suggesting that Bitcoin could withstand a correction to $77,000 while maintaining its bull market structure. The analyst expects the current cycle to continue throughout 2025, with potential for higher prices despite short-term volatility.
FTX Repayments and Fed Concerns: External Pressures Mount on Bitcoin Price
Several factors currently influence Bitcoin’s price action:
- FTX’s commencement of creditor repayments, distributing over $1.2 billion based on November 2022 prices
- Ongoing geopolitical tensions and U.S. trade tariffs affecting risk assets
- Federal Reserve’s recent minutes highlighting inflation concerns and economic uncertainty
While Bitcoin’s price remains range-bound, the confluence of institutional adoption, technical indicators, and state-level interest suggests the market may be approaching a significant move. However, concerns about potential price manipulation and external market pressures continue to create uncertainty in the short term.
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