Bitcoin Stalls at $100K: Liquidity Woes and Tech Slowdown Take a Toll

Bitcoin’s (BTC) much-anticipated rally is losing steam as it struggles to maintain momentum above the $100,000 mark. For three consecutive weeks, BTC has traded between $90,000 and $100,000, with only a fleeting breakout on December 5. The reasons? A tightening liquidity squeeze and cooling tech sector sentiment.

According to 10x Research, the market liquidity impulse index, which tracks stablecoin mints, ETF inflows, and futures activity, has plummeted to $7 billion weekly, down from $15 billion last month. This liquidity drought has left BTC gasping for bullish support. Markus Thielen of 10x Research explains, “The slowdown in liquidity growth explains Bitcoin’s difficulty in sustaining levels above $100,000.”

Adding to the pressure is Nvidia’s (NVDA) faltering momentum. Once a strong indicator of tech and crypto market sentiment, the chipmaker’s recent struggles hint at a bearish reversal. With BTC and NVDA showing a 0.6 correlation over the past year, the tech giant’s deceleration is spilling into Bitcoin’s price action.

While market leverage has normalized, setting the stage for another potential rally, Bitcoin’s ability to break past $100,000—and stay there—rests on fresh liquidity inflows and renewed risk appetite. Until then, the king of crypto remains in limbo.#bitcoin☀️ $BTC