BTC Retreats as Attempt to Hit $90K Stalls
Bitcoin has begun a significant downturn ahead of the weekend, slipping below the $90,000 mark. After reaching a high of around $89,682.35, it fell sharply, reversing gains made following a tumultuous market dip that pushed prices down as low as $84,000 last Sunday. This current decline suggests a potential stall in Bitcoin’s pursuit of a $90,000 target.
Ethereum and Altcoin Trends
Ethereum has also shown a downward trend, decreasing by 2% to approximately $3,034.52. Other notable altcoins like Solana, ADA, Dogecoin, and HYPE have witnessed declines exceeding 4%. This broader bearish trend in the crypto market aligns with analysts’ expectations of ongoing consolidation rather than a quick recovery.
Impact on Crypto-Related Stocks
- MSTR (MicroStrategy)
- GLXY (Galaxy Digital)
- CLSK (CleanSpark)
- ABTC (American Bitcoin)
These stocks have experienced losses ranging from 4% to 7% due to the recent price shifts in cryptocurrency markets.
Market Timing Insights
According to Velo data, the hour leading up to the U.S. market opening has consistently been the least favorable time for Bitcoin. Additionally, Fridays have been identified as particularly bearish days over the last six months, further complicating traders’ expectations.
Consumer Sentiment and Inflation Expectations
Recent consumer sentiment data from the University of Michigan could influence market dynamics. The December survey revealed a decrease in the 1-Year Consumer Inflation Expectation from 4.5% to 4.1%, and a drop in the 5-Year expectation from 3.4% to 3.2%. Despite being anecdotal, this data could provide a respite from current bearish trends.
Future Outlook
With a Federal Reserve meeting scheduled for next week, anticipations of interest rate cuts are high. If inflation continues to ease, it might pave the way for further rate decreases in early 2026. Such a scenario could create a more favorable environment for risk markets, including cryptocurrencies.
