Hassan Maishera
TL;DR
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BTC is down 3.8% in the last 24 hours and is now trading around $86k per coin.
The cryptocurrency market has continued its poor start to the week, with the total market cap now below $3 trillion. The bearish performance comes as Bitcoin, the leading cryptocurrency by market cap, temporarily dropped below $86k.
BTC is now trading at $86,384 per coin, with further downward movement expected in the near term.
This bearish performance is not unique to the cryptocurrency market. Global markets mirrored this trend, with Asian equities and U.S. equity futures softening, while the dollar hovered near two-month lows.
Bitcoin’s dip below $86k comes as the market prepares for a week of heavy macroeconomic events. In the United States, investors are closely monitoring several key employment indicators, including the unemployment rate, ADP employment data, and weekly jobless claims, alongside November inflation data, December flash PMI readings, and speeches from Federal Reserve Governors Stephen Miran and Christopher J. Waller. These events could give investors clues on the path of interest rates.
Additionally, traders are closely monitoring developments in Japan, with the Bank of Japan (BOJ) expected to raise interest rates at its upcoming policy meeting on Thursday. The BOJ is expected to raise the rate to 0.75% after Governor Kazuo Ueda signaled that inflation has remained above the central bank’s 2% target for the past three years.
Altcoins Also Falter
The bearish performance is not restricted to Bitcoin, with most altcoins losing 5% of their values over the past 24 hours. Ether is the worst performer among the top 10 cryptocurrencies by market cap as it is currently down 6%. It has dropped below $3k and could retest the $2,800 support level if the bearish trend continues.
Furthermore, XRP has failed to hold the $1.96 support and is now trading at $1.88, with the $1.76 support now in sight. Solana’s SOL could drop below $120 if the market selloff continues.
