- Bitcoin traded near $89,000 after losing last week’s gains post-Fed rate cut.
- Market shows cautious trading with low leverage and muted volatility.
- Digital asset treasury companies resumed buying bitcoin amid range-bound prices.
- Ethereum held recent gains better than bitcoin due to lighter selling pressure.
- Gold stayed near record highs, while Asian markets opened lower amid economic data releases.
Bitcoin hovered around $89,000 as Hong Kong began its workweek, retreating from last week’s gains following the Federal Reserve’s 25 basis points rate cut. According to FlowDesk, demand for bitcoin swiftly diminished after the rate cut, with decreasing liquidity approaching year-end. This has contributed to price action remaining range-bound with limited follow-through.
Both bitcoin (BTC) and ethereum (ETH) declined from midweek highs, while altcoins continued under pressure. This environment reflects overall market caution and a lack of sustained momentum rather than outright risk aversion. In a Telegram note, FlowDesk highlighted that leverage remains low and volatility subdued, with capital moving towards short-dated yields. Counterparties are locking in longer-term funding at compressed rates, suggesting a focus on balance sheet efficiency instead of directional trading.
Meanwhile, digital asset treasury companies have resumed purchasing bitcoin, as observed by Glassnode. Historically, pauses in treasury buying have coincided with stagnant bitcoin prices in recent months. Currently, this combined trading caution and balance sheet accumulation cause bitcoin to remain stuck within a broad range, with rallies fading but downside also limited.
Ethereum demonstrated relative strength by holding gains better than bitcoin, supported by selective demand and lower selling pressure despite cautious market sentiment. Gold prices hovered near record highs around $4,300 per ounce (approximately $138,000 per kilogram) due to ongoing rate cuts, high global debt, and steady central bank demand.
Asian markets, including the Nikkei 225, opened lower as investors digested declines on Wall Street and adopted cautious stances on risk. Market attention focused on China’s November activity data and Japan’s Tankan survey, which reported a four-year high in business sentiment among large manufacturers.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Broadcom Shares Drop 11% on Mixed AI Chip Earnings, Dragging Semiconductors Down
- XRP Surges 500% Post-Trump Win: Can Rally Repeat?
- Memecoins Not Dead, Will Return in New Form, Says MoonPay CEO
- Solana (SOL) Drops 5%, Could Signal Buying Opportunity Ahead
- Transhumanism Debate: “Death Cult” Criticism Sparks Ethical Clash
