Crypto markets are heading into the final trading days of the year with low liquidity and a closely watched U.S. macroeconomic calendar. Although risk asset price action remains relatively contained, several key events this week could influence near-term sentiment, particularly for cryptos which tend to react strongly in low volume conditions.
FOMC minutes in brief
On Tuesday, December 30, the Federal Reserve will publish the minutes of its latest policy meeting. Traders will be looking for clues on the timing and pace of potential interest rate cuts in 2026. Any change in tone could influence risk appetite in the stock and crypto markets, especially with liquidity already dwindling.
Labor market data to test sentiment
Initial jobless claims data on Wednesday, Dec. 31, will offer new insight into the health of the U.S. labor market. Weaker data could bolster expectations for monetary easing, while higher numbers could dampen rate-cut optimism and put pressure on risky assets in the near term.
Holiday Liquidity Adds Risk
US stock markets will remain closed on Thursday January 1 for New Year’s Day, further reducing liquidity. Under such conditions, even modest surprises can lead to exaggerated price movements, especially in 24/7 markets like crypto.
BTC and ETH: Key Levels Traders Watch
For Bitcoin, the focus remains on whether the price can sustain above the $89,500-$90,000 support zone during these data releases. A dovish reading from the FOMC minutes or weaker jobless claims could allow BTC price to reclaim $90,500, opening the door for a push towards the $93,000-$93,650 resistance zone. On the other hand, a loss of $89,500 could bring Bitcoin back to between $87,500 and $88,000, especially if liquidity remains low.
Ethereum is expected to follow Bitcoin’s direction, but with slightly higher volatility. ETH is consolidating above key support near $2,900-$3,000. A positive macro reaction could help ETH price reclaim the $3,200-3,300 resistance zone, strengthening the bullish setup through early 2026. However, failure to maintain the $2,900 level could result in a larger pullback towards $2,700-2,650.
What this means for crypto markets
With liquidity dwindling at the start of the new year, these events are more likely to trigger short-term spikes in volatility rather than establish lasting trends. Traders should remain selective, focusing on key technical levels while awaiting clearer confirmation once liquidity normalizes.
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