Bitcoin slid below the $90,000 mark on Sunday during a period of quiet trading, reflecting a general hesitance among investors leading up to an eventful week filled with economic data releases and central bank activities. At early afternoon UTC, Bitcoin was valued at approximately $89,600, marking a decline of around 0.9% over the last 24 hours. Although it showed a slight increase throughout the week, Bitcoin remains down nearly 7.6% when compared to its performance over the past month.
Ether followed a similar trend, trading near $3,104—down slightly for the day but registering over a 2% increase over the past week, thereby outperforming Bitcoin on a weekly scale. In contrast, the broader cryptocurrency market exhibited sluggish price movements. Notable altcoins such as Solana, XRP, dogecoin, and Cardano’s ADA experienced declines, contributing to ongoing double-digit losses over the month and highlighting the persistent weakness in major altcoin performance. The CoinDesk 20 Index (CD20) recorded a near 1% decline.
The total market capitalization for cryptocurrencies stood at nearly $3.15 trillion, reflecting a 0.8% decrease within 24 hours, accompanied by trading volumes of around $89 billion. These figures illustrate the thin liquidity typical for Sundays. Bitcoin’s dominance remained around 57%, indicating a continued concentration of investor interest in the largest digital asset, as market participants exercise caution.
Several analysts warned that Bitcoin’s current consolidation phase could pivot downward if it fails to maintain key technical levels. Analyst Ali Martinez noted on social media platform X that the crucial support level of $86,000 needs to be upheld; losing this threshold could trigger a more significant downturn for Bitcoin.
Market participants appear to be holding their breath ahead of a busy macroeconomic calendar in the coming days. Key indicators from the U.S. are expected, including metrics related to employment such as the unemployment rate, ADP employment data, and weekly jobless claims. Additionally, upcoming inflation figures, December flash PMI readings, and speeches from Federal Reserve Governors Stephen Miran and Christopher J. Waller are highly anticipated as investors seek clues regarding future interest rate trajectories.
Across the Pacific, developments in Japan are also drawing attention, particularly with the Bank of Japan (BOJ) poised to raise interest rates at its upcoming policy meeting on Thursday. A recent Reuters report indicated that markets have largely anticipated a rate increase that would adjust the borrowing rate to 0.75%, following Governor Kazuo Ueda’s indication that inflation has surpassed the central bank’s 2% target for over three years. Even after such an adjustment, Japanese borrowing costs will remain low by global standards. However, the BOJ is likely to stress that monetary policies will stay accommodative, with future rate hikes dependent on the economic response to each increase.
These expectations of a tightening policy framework have raised concerns regarding the potential impact on yen-funded carry trades, which have historically provided liquidity supporting various global risk assets, including cryptocurrencies.
Currently, cryptocurrency markets are characterized by restricted trading patterns, muted volumes, and a lack of clear direction as traders await definitive signals from the forthcoming U.S. economic reports and central bank decisions.
