BTC (Bitcoin) breaks through $87,000, with a market capitalization of approximately $1.74 trillion

Gate News Bot Message, December 19 — According to CoinMarketCap data at the time of press, BTC (Bitcoin) is currently priced at $87,050.05, up 0.65% in the past 24 hours, with a high of $90,647.57 and a low of $84,436.32. The 24-hour trading volume reached $54.879 billion. The current market capitalization is approximately $1.74 trillion, an increase of $11.288 billion from yesterday.

Bitcoin is an innovative payment network and a new form of currency. As the world’s first cryptocurrency, Bitcoin operates using peer-to-peer technology without the need for central authorities or banks; transaction management and Bitcoin issuance are handled collectively by the network. Bitcoin is open-source, with transparent design; no one can own or control Bitcoin, and everyone can participate. Through many unique features, Bitcoin enables exciting applications previously unattainable by any payment system, including fast peer-to-peer transactions, global payments, and low processing fees.

Important recent news about BTC:

1️⃣ Institutional funds continue to increase holdings, treasury companies become key allocation targets

The Federal Reserve’s rate cuts and new accounting rules have driven institutional investors’ enthusiasm for Bitcoin allocation. Over the past two weeks, crypto asset treasuries saw a net inflow of $2.6 billion, a seven-week high, with leading strategy firms purchasing over 20,000 BTC twice in one week, totaling nearly $2 billion. Meanwhile, Ark Invest has increased its holdings in crypto-related stocks like BitMine, reflecting ongoing confidence among institutions in Bitcoin’s mid- to long-term value during market corrections. Additionally, Bitcoin treasury strategies received public support from Norway’s sovereign wealth fund, the Government Pension Fund of Norway, which holds shares in Metaplanet and voted in favor of its Bitcoin accumulation plan, elevating Bitcoin asset allocation from corporate practice to a national fund strategy level.

2️⃣ Short-term market volatility intensifies, bullish sentiment faces tests

While Bitcoin remains near $87,000, market structure shows signs of fatigue. Over the past 24 hours, liquidations exceeded $540 million, with Bitcoin-related liquidations reaching $160 million, indicating significant leverage pressure on long positions. The options market shows polarization, with traders accumulating sizable put options near $85,000, and 30-day implied volatility rising to nearly 45%, with skew remaining negative, reflecting high alertness to downside risks. On-chain data shows a well-known early Bitcoin investor transferring 5,152 BTC to mainstream exchanges, possibly signaling short-term selling pressure.

3️⃣ Medium- and long-term outlook supported by professionals despite short-term correction risks

Industry strategists generally believe that although Bitcoin faces a short-term correction risk to $70,000–$60,000, its medium- and long-term prospects remain optimistic. Tom Lee, Chairman of BitMine, stated he does not believe this cycle has peaked and expects new all-time highs by late January next year. Delphi Digital’s 2026 market outlook indicates that global liquidity conditions are expected to improve, with central bank policies converging, deficit spending driving debt monetization, and assets like gold and Bitcoin likely to benefit. Twenty One Capital CEO, a treasury company, also emphasized that shorting the dollar and going long on BTC are core strategies, demonstrating institutional confidence in Bitcoin’s long-term value.

4️⃣ Policy support increases, traditional finance accelerates integration

The Federal Reserve and the U.S. Securities and Exchange Commission have relaxed crypto regulations, allowing banks broader participation in Bitcoin custody, tokenized deposits, and related activities, significantly lowering barriers for institutional involvement. Brazil’s stock exchange is advancing in real-world asset tokenization and crypto derivatives, planning to issue Brazilian Real stablecoins for clearing and settlement. Norwegian travel retail company accepts Bitcoin payments at Oslo Airport, marking expanding practical applications of Bitcoin payments. These initiatives point toward deepening integration between traditional finance and Bitcoin, laying a regulatory foundation for long-term value.

5️⃣ Approximately $23 billion in options expiring may increase market volatility

Next Friday (December 26), about $23 billion worth of Bitcoin options will expire, accounting for over half of open interest on Deribit. A large concentration of put options is near the $85,000 strike price, and some analysts believe that the expiration could act as a catalyst for short-term price volatility. Additionally, implied volatility markets show only about a 30% chance of Bitcoin reaching $100,000, and roughly a 10% chance of setting a new all-time high, indicating market expectations for a significant short-term rally have decreased.

This message is not investment advice; please be aware of market volatility risks.