Bitcoin Dips Below $90K Amid Quiet Trading, Cautious Investors

Bitcoin dips below $90,000 amid cautious trading ahead of key economic reports and central bank meetings, while altcoins face monthly losses and market awaits U.S. and Japan rate decisions.

  • Bitcoin fell below $90,000 amid cautious trading before key economic reports and central bank meetings.
  • Ether showed modest gains over the week, outperforming Bitcoin despite a slight daily decline.
  • Major altcoins including Solana, XRP, Dogecoin, and Cardano continued to experience monthly losses.
  • The cryptocurrency market capitalization dropped slightly to around $3.15 trillion with Bitcoin dominance near 57%.
  • Investors await important U.S. employment and inflation data, along with expected Bank of Japan interest rate changes, for clearer market direction.

Bitcoin dipped below the $90,000 mark on Sunday during subdued trading, as investors held back ahead of a busy week featuring significant economic data and central bank announcements. The leading cryptocurrency traded near $89,600 early Sunday afternoon UTC, representing a 0.9% drop in 24 hours, while remaining slightly positive for the week but down approximately 7.6% over the past month.

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Ether (ETH) traded close to $3,104, showing a modest decline on the day but an increase of over 2% for the week, thus outperforming Bitcoin during this period. Other major altcoins such as Solana, XRP, dogecoin, and Cardano’s ADA posted declines, continuing their pattern of notable monthly losses.

The total market capitalization for cryptocurrencies stood at about $3.15 trillion, decreasing by around 0.8% over the last day. Trading volume was approximately $89 billion, typical for the lower liquidity seen on Sundays. Bitcoin dominance hovered near 57%, indicating a sustained concentration of market value in the largest digital asset.

Crypto analyst Ali Martinez noted on X that $86,000 remains a crucial support level for Bitcoin, stating that a significant pullback may occur if this threshold fails, as seen in a post found here.

The market’s cautious stance reflects anticipation of several upcoming U.S. economic indicators. Key data expected this week include the unemployment rate, ADP employment figures, weekly jobless claims, November inflation statistics, and December flash Purchasing Managers’ Index (PMI) readings. Additionally, speeches from Federal Reserve Governors Stephen Miran and Christopher J. Waller are on investors’ watchlists for guidance on interest rate trends.

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Globally, attention is on Japan, where the Bank of Japan (BOJ) is likely to raise interest rates in its forthcoming policy meeting. According to this Reuters report, the BOJ is expected to increase its policy rate to 0.75% after inflation has exceeded the 2% target for over three years, with future hikes contingent on economic response. This move could impact yen-funded carry trades, an important source of liquidity supporting global risk assets including cryptocurrencies.

Currently, cryptocurrency markets remain range-bound with limited trading volumes, as market participants await clearer indications from upcoming economic data and central bank actions.

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