Bitcoin soared to $94,000
Digital asset markets are consolidating in a volatile but resilient range, but investor activity is largely limited to Bitcoin and Ethereum, according to Wintermute analysts.
“After two months of macroeconomic uncertainty, markets are beginning to show greater tolerance for negative factors. Familiar concerns about a reversal in central bank policy, mixed macroeconomic data, and lingering capital allocations to AI stocks remain, but they no longer elicit the reflexive risk-aversion response of before,” the experts noted.
According to them, markets have entered a “consolidation phase characterized by a mixture of stability and instability”, as evidenced by the tightening of prices over the past two weeks.
For digital assets, however, this seems more like a “digestion period” than an established trend.
According to Wintermute, the slightest boost from the Nasdaq led to selective risk-taking, with investors favoring quality over broad beta. In the crypto space, this has “reduced interest” in major coins – BTC and ETH – across retail and institutional cohorts.
“Despite this, the compressed basis suggests a low probability of leverage deployment, as the market awaits macroeconomic clarity. Meanwhile, high year-end implied volatility indicates a split market: traders are targeting either $85,000 or $100,000,” the analysts added.
Attention is now focused on the FedThe December 10 interest rate decision and a similar decision from the Bank of Japan next week. In the absence of decisive “macro surprises,” cryptocurrencies will likely remain range-bound.
Market participants estimate the probability of a 25 basis point reduction at 89.6%.
Market conditions
On December 9, after the opening of the US session, bitcoin rose from $90,000 to $94,000.
Ether rose from around $3,100 to $3,450.
Over the past 24 hours, liquidations totaled $376 million, including $296 million in shorts.
The rise of the crypto market also coincided with the release of data on the US job market. Job offers in October were slightly lower at 7.7 million compared to 7.6 million in September.
The Fear and Greed crypto index remains in the “extreme fear” zone at 22.
Previously, researchers at the London Crypto Club predicted a sharp rise in bitcoin, driven by the upcoming Fed meeting.
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