Bitcoin dipped below $90,000 on Sunday amid low trading activity, as investors displayed minimal risk appetite in anticipation of a week filled with economic reports and central bank meetings.
The largest cryptocurrency was priced around $89,600 early in the afternoon UTC, reflecting a decline of approximately 0.9% over 24 hours, slightly up this week, yet down about 7.6% for the past month. Ether traded around $3,104, showing a drop for the day but an increase of more than 2% over the past week, outperforming Bitcoin weekly.
In the broader market, price movements were marginal. Solana, XRP, dogecoin, and Cardano’s ADA saw declines, showing persistent double-digit losses for the month, reflecting ongoing weakness in major altcoins. The CoinDesk 20 Index (CD20) fell nearly 1%.
The total crypto market cap was nearly $3.15 trillion, a decrease of about 0.8% in 24 hours, with trading volumes around $89 billion, indicative of the low liquidity characterizing Sundays. Bitcoin’s dominance lingered around 57%, highlighting sustained focus on the largest digital asset as investors remain selective.
Some analysts warned that Bitcoin’s consolidation might decline if it fails to hold critical technical support levels. Crypto analyst Ali Martinez noted earlier Sunday on X that maintaining the $86,000 level is crucial for Bitcoin, pointing to potential deeper pullbacks if this support collapses.
Markets seem to be in a holding pattern ahead of a busy macroeconomic agenda in the following days. In the U.S., attention will be on several employment metrics, including the unemployment rate, ADP employment statistics, and weekly jobless claims, along with November inflation figures, December flash PMI readings, and speeches by Federal Reserve Governors Stephen Miran and Christopher J. Waller, for insight on interest rate trajectories.
Macro-sensitive traders are also watching developments in Japan, where the Bank of Japan (BOJ) is anticipated to hike interest rates at its upcoming meeting on Thursday. According to a Reuters report released Friday, the market has largely accounted for a move that would increase the rate to 0.75% after Governor Kazuo Ueda indicated that inflation has surpassed the central bank’s 2% target for over three years.
While Japanese borrowing costs would remain low by global standards post-move, the report suggests that the BOJ is likely to stress that monetary conditions will stay accommodative and future rate hikes will depend on the economy’s response to each increment. Nonetheless, expectations of tightening policy have spotlighted the potential effects on yen-funded carry trades, which have provided liquidity supporting global risk assets, including cryptocurrencies.
Currently, the crypto markets are range-bound, marked by low volumes and a lack of conviction as traders await clearer signals from forthcoming U.S. data and central bank actions.
