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Bitcoin’s holiday season slump arrived ahead of schedule. Shedding its usual Sunday evening drama, the cryptocurrency took an early nosedive, plunging back below $90,000 during the opening bell of U.S. trading.
Bitcoin’s price has rebounded, reclaiming lost ground after last Sunday’s dramatic plunge that sent shivers through the market, briefly bottoming out at a worrisome $84,000.
Crypto markets are seeing red today as Bitcoin’s dip drags down Ethereum and leading altcoins. Ether is currently trading 2% lower, while Solana, Cardano, Dogecoin, and HYPE are feeling the heat even more, plummeting over 4%. Is this just a minor correction, or the start of a deeper downturn?
Forget a V-shaped recovery. Analysts are doubling down: crypto’s headed for a year-end consolidation, not a moonshot.
Bitcoin’s stumble sent shockwaves through crypto stocks. Heavy hitters like MicroStrategy (MSTR), Galaxy Digital (GLXY), CleanSpark (CLSK), and American Bitcoin (ABTC) are feeling the burn, plunging 4-7%. The crypto winter just got a little colder.
Velo data reveals a chilling pattern: the hour before the US market awakens and its initial hour of trading have consistently been the most treacherous for bulls over the last six months.
Friday has also been the most consistently bearish day of the week across the same time period.
6m Average Return by hour (Velo)
Anecdotal inflation data sparks hope
Will consumer confidence break the market’s bearish spell? Keep an eye on the University of Michigan Consumer Sentiment Index, dropping at 10 AM ET. A positive surprise could be just the antidote the market needs to shake off its gloom.
December brought a sprinkle of holiday cheer to inflation forecasts! One-year consumer inflation expectations dipped to 4.1%, a welcome drop from both the previous 4.5% and the anticipated 4.5%. Looking further down the chimney, the 5-year outlook also brightened, easing to 3.2% from 3.4% (previously and expected). While these numbers are seasoned with a pinch of political opinion (as is often the case), the overall trend suggests consumers are feeling slightly more optimistic about future price stability.
Official economic indicators are scarce, so private surveys now wield unprecedented influence. Bitcoin responded, inching back to $91,000 territory in the minutes after the report’s release.
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