Bitcoin fell below $89,000 over the weekend. Sunday trading was quiet, and traders avoided risks ahead of important economic data due to be released this week. By Monday morning, Bitcoin traded at about $89,600 – still down 7.6% over the past month.
Other major altcoins like Solana, XRP, Dogecoin, and Cardano fell. They added to their double-digit losses from the past month, and the CoinDesk 20 Index dropped nearly 1%.
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Some traders have already pulled back their crypto positions as they derisk to protect their portfolios in the last few weeks of the year. Others continue to wait for positive U.S. economic data this week. This includes unemployment rates, ADP jobs data, jobless claims, November inflation, December PMI previews, and speeches from Fed officials Stephen Miran and Christopher Waller.
Japan’s Bank of Japan may raise rates to 0.75% on Thursday to fight high inflation. This could affect yen carry trades, which have supported crypto prices.
Markets are relatively stable now with low volumes being seen, but could spike again if a large catalyst emerges.
The likelihood of a Santa Claus rally in the last few weeks is low given rising pessimism that the US stock market will continue its rally, especially since the Fed is giving mixed signals about its outlook for next year.
For now, Bitcoin and Ethereum are trading at relatively subdued levels – now might be a good time to add them to your portfolio.
