Coinbase Report Highlights Bitcoin’s Paradoxical Decline Amid Strong Macro Liquidity
Despite improved macroeconomic liquidity conditions signaled by Federal Reserve measures, Bitcoin continues to face downward pressure, according to a recent Coinbase Institutional report. The cryptocurrency has breached critical support levels as large holders (whales) persistently offload positions. Market sentiment appears bearish, with options pricing reflecting pessimism and spot ETF outflows gaining momentum. Additionally, decentralized autonomous treasury activity shows signs of significant slowdown, suggesting reduced participation or confidence in decentralized finance (DeFi) ecosystems. This divergence between strengthening macro conditions and Bitcoin's price action presents a puzzling scenario for investors as we approach the end of 2025.
Bitcoin Faces Downward Pressure Despite Improved Macro Liquidity
Coinbase Institutional reports a paradoxical market dynamic: Federal Reserve liquidity measures have strengthened macroeconomic conditions, yet Bitcoin fails to capitalize. The digital asset breaches critical support levels as whale wallets continue offloading positions.
Options markets now price in bearish sentiment, with spot ETF outflows accelerating. Decentralized autonomous treasury activity shows notable slowdown, compounding the negative technical picture. Market participants remain cautious despite favorable monetary policy shifts.
Sui Token Surges 21% as Coinbase Opens Trading to New York Market
Sui (SUI) rallied sharply after Coinbase enabled trading for New York residents, marking the token's debut in one of the most tightly regulated U.S. markets. The 21% surge to $1.61 reflects pent-up demand in a jurisdiction historically constrained by regulatory hurdles.
The exchange's announcement coincided with Sui's rollout of USDsui, a fiat-backed stablecoin designed for payments and DeFi applications. Market technicians note key resistance at $1.67, with traders eyeing $1.80-$2.30 as next targets should bullish momentum hold.
Notably, the token weathered November's $86.86 million unlock event—55.54 million sui entering circulation—without the typical supply-driven selloff. This resilience suggests institutional accumulation may be offsetting inflationary pressure.
BTC and Vanguard Impact: Markets Surge and Anticipate More Gains
Bitcoin surged past $93,000 as Vanguard's unexpected cryptocurrency maneuver injected Optimism into markets. The move signals shifting institutional sentiment, with analysts noting its potential to stabilize prices and attract renewed inflows.
U.S. investor appetite showed tentative signs of recovery, with bitcoin ETFs recording modest inflows after prolonged withdrawals. The Coinbase Premium Index's return to positive territory further underscores growing American interest.
Vanguard's influence appears pivotal. The asset manager's clients drove notable Bitcoin ETF volume, correlating with positive movements in the Coinbase Premium bars. "I believe Vanguard's influence might linger," one analyst observed, suggesting the trend could gain momentum.
