Bitcoin Updates: Bitcoin’s Financial Infrastructure Sets the Stage for an ETF-Fueled Bull Market
- BlackRock deposited $422M in BTC/ETH to Coinbase Prime, signaling institutional-driven Bitcoin liquidity growth and ETF adoption. - Nasdaq's 40x IBIT options expansion is seen as structural catalyst for institutional capital deployment and Bitcoin's all-time high potential. - Mixed on-chain metrics show $90k retest but weak liquidity above $84k, with weekend volatility and short-covering limiting sustained bullish momentum. - Market awaits confirmation of BlackRock's $85.3k support hold and Fed rate deci
Institutional Activity Signals Shifting Bitcoin Demand
In early December 2025, Coinbase's Premium Index for Bitcoin climbed above zero, hinting at renewed interest in the cryptocurrency from U.S. ETF investors. This uptick occurred alongside substantial on-chain transfers from BlackRock to Coinbase Prime, the platform designed for institutional custody and trading. Over $422 million in Bitcoin and Ethereum were deposited, highlighting the increasing influence of major financial institutions on Bitcoin’s price trends and overall liquidity.
Major Transfers Mark Institutional Engagement
Data from blockchain analytics firms Lookonchain and Arkham Intelligence revealed that on November 24, 2025, BlackRock moved 3,722 BTC (worth $321.19 million) and 36,283 ETH (valued at $101.72 million) to Coinbase Prime. Earlier that same week, BlackRock had already deposited 4,471 BTC (approximately $390.8 million). These significant inflows are often seen as preparations for ETF liquidity management, such as creation or redemption processes. Historically, such institutional accumulation has been associated with short-term upward momentum, especially as Bitcoin approaches important resistance points.
Derivatives Market Expansion and Its Impact
The timing of these deposits is notable given recent changes in the derivatives landscape. Nasdaq has proposed a major increase in the options contract limit for BlackRock’s iShares Bitcoin Trust (IBIT), expanding it to 1 million contracts—a fortyfold jump. Analysts view this as a pivotal development that could drive further institutional involvement. Crypto commentator Max Keiser suggested that this adjustment addresses previous liquidity challenges for market makers, potentially enabling greater leveraged demand and paving the way for Bitcoin to reach new record highs. He emphasized that the necessary financial infrastructure is now in place for large-scale institutional investment, linking inventory accumulation to greater price stability.
Mixed Signals from On-Chain Metrics
Despite these positive signs, current blockchain data presents a more nuanced outlook for Bitcoin enthusiasts. After reclaiming the $90,000 mark in late November, Glassnode reported limited liquidity above $84,000 and a Short-Term Holder Profit/Loss Ratio of just 0.07x, indicating persistent selling pressure. Experts stress that continued buying interest between $84,000 and $90,000 is vital to maintain the recent recovery. At the same time, derivatives trading has been characterized by short-covering rather than the establishment of new long positions, with open interest falling and funding rates remaining close to neutral.
Volatility and Resistance Challenge the Rally
Weekend trading brought additional uncertainty. As Bitcoin attempted to break into the $90,000–$100,000 range, significant sell orders appeared between $88,000 and $91,000, stalling its progress. Traders warn that rallies driven by weekend activity often lose momentum without institutional participation during the week—a pattern seen in previous efforts to surpass $100,000. Technical analysts are watching whether Bitcoin can maintain levels above $85,300, which would confirm support at a key Fair Value Gap.
Traditional Finance and Crypto Interactions
The broader financial environment also plays a role in shaping crypto trends. Inflows into BlackRock’s ETF have been linked to movements in tech-heavy indices like the Nasdaq, with companies exposed to crypto seeing their valuations rise. Additionally, upcoming decisions from the Federal Reserve regarding interest rates are expected to influence market sentiment as the year ends, leaving short-term momentum on uncertain ground.
Looking Ahead: Can Institutional Moves Sustain the Rally?
Market participants are closely monitoring whether BlackRock’s ongoing deposits and the expansion of derivatives markets will spark a lasting uptrend. While institutional investment is helping to integrate Bitcoin into mainstream finance, traders must contend with thin liquidity and resistance zones as they evaluate the next stage of the bull market.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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