Bitcoin is trading in a narrow band between $85,000 and $92,000, where resistance is increasingly used by investors to exit positions. On-chain metrics show only about 65% of supply in profit and sentiment indicators have turned bearish, while analysts warn a breakdown could send the price toward the low-volume zone near $75,000. The current fragile phase began in early November and could persist before any decisive move unfolds.

On Monday morning, bitcoin climbed to just over $90,000 before encountering resistance, with one analyst tying the move to renewed buying by both retail traders and large whales. Another analyst argued the advance may be a dead-cat bounce, pointing to net capital outflows of more than $4.5 billion and weaker spot ETF inflows. Bitcoin remains about 2.3% higher on the day, while major altcoins such as ETH, BNB and XRP also advanced, with ETH reclaiming the $3,000 mark.

Bitcoin’s mining difficulty climbed to 148.2 trillion in the final 2025 adjustment and is projected to rise toward about 149 trillion around January 8, 2026, at block height 931,392. Faster-than-target block times and pressure on miner profitability are driving tighter conditions, while Bitmain responds with steep discounts on S19 XP+ Hydro hardware slated to ship in January 2026.

On 29 December 2025, Bitcoin's final difficulty adjustment of the year lifted the metric to about 148.2 trillion, setting a new all-time high. With average block times currently running slightly under the 10-minute target, another increase toward 149 trillion is projected for early January 2026, reinforcing network security while raising operational pressure on miners.

Coinbase CEO Brian Armstrong wrote on X that Bitcoin introduces "healthy" competition for the US dollar, helping to restrain high inflation and deficit spending as US public debt climbs above $38 trillion. He previously argued that if lawmakers fail to address fiscal deficits and national debt, Bitcoin could gradually evolve into a reserve currency. Armstrong also criticized efforts to reopen the GENIUS Act, claiming banks are trying to curb stablecoins and fintech innovation while he pledges that Coinbase will resist changes he views as harmful to consumer benefits.

On December 29, 2025, analysis showed references to blockchain in US SEC filings climbed to record levels during 2025, with Bitcoin taking the largest share. Mentions rose to around 8,000 by August and stayed high into November as new federal rules and ETF activity pushed institutions toward regulated Bitcoin exposure.

Bitcoin traders remain cautious even as global liquidity hits record levels across major economies. BTC is still nearly 30% below its all-time high, while aggregated open interest hovers near $27.3 billion and funding stays mildly positive. Cycle gauges also sit far from overheated territory, pointing to a market that has yet to fully engage risk.

In a recent interview, Coinbase CEO Brian Armstrong argued that Bitcoin acts as a market-based check on excessive US inflation and deficit spending, indirectly supporting the dollar's position as the leading reserve currency. He suggested that investors could move into Bitcoin during periods of economic uncertainty, pressuring policymakers to maintain fiscal discipline. The article also notes that US national debt has climbed to $37.65 trillion and highlights debate over whether Bitcoin or rapidly growing dollar-pegged stablecoins play the larger role in preserving dollar dominance.