Analysts: Crypto market enters "frozen" state ahead of Fed decision, early signs of recovery emerging.
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TL;DR
Analysts note the crypto market is in a 'frozen' state before the Fed decision, with early recovery signs like stable addresses and rising volumes, but confidence remains low. Altcoins are gaining attention while Bitcoin lags, as traders await FOMC outcomes amid mixed economic data.
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crypto marketFed decisionBitcoinAltcoinrecovery signs
According to Mars Finance, on December 9th, The Block reported that Timothy Misir, Head of Research at BRN, stated that the flow of funds into US cryptocurrency ETFs reflects "selective allocation rather than comprehensive risk aversion." While Bitcoin (BTC) continues to underperform, Altcoin are attracting attention. The market is showing early signs of recovery, but confidence has yet to materialize. "Active addresses are stabilizing, and transaction volumes are increasing, indicating that the market is recovering, but it's still far from truly healthy," Misir wrote in a report on Tuesday. "Early signs of recovery have emerged, but market confidence remains lacking." Misir described this week as a "macro binary week," with traders generally choosing to wait and see ahead of Wednesday's FOMC meeting results. Expectations of interest rate cuts are high, supported by weak ADP employment data and deteriorating consumer confidence, but pessimistic sentiment among US households and record levels of consumer credit are complicating the demand outlook.