Bitcoin Drops Below $89K Amid Fading Risk Appetite Ahead of Key Macro Events

• Bitcoin slipped below $89,000 in low-liquidity trading on Sunday.
• Ether showed relative strength, while major altcoins lagged behind.
• Traders are positioning ahead of a busy week of U.S. data and central bank events.

Bitcoin BTC$88,063.02 drifted below $89,000 on Sunday during quiet trading, with investors showing limited appetite for risk ahead of a busy week of economic data and central bank events.

The largest cryptocurrency was trading around $89,600 as of 12:40 p.m. UTC, down approximately 0.9% in the preceding 24 hours, marginally higher on the week, and still down roughly 7.6% over the past month. Ether ETH$3,064.31 changed hands near $3,104, down on the day but up more than 2% over the past seven days, outperforming bitcoin on a weekly basis.

Across the broader market, price action remained subdued. Solana, XRP, dogecoin and Cardano's ADA all fell, and continued to show double-digit losses over the past month, underscoring persistent weakness across major altcoins. The CoinDesk 20 Index (CD20) dropped almost 1%.

The total cryptocurrency market capitalization stood at nearly $3.15 trillion, approximately 0.8% lower over the past 24 hours, with trading volumes of around $89 billion, reflecting the typically thin liquidity on Sundays. Bitcoin dominance hovered near 57%, highlighting continued concentration in the largest digital asset as investors remain selective.

Some analysts cautioned that bitcoin’s consolidation could turn lower if key technical levels fail. Crypto analyst Ali Martinez said earlier Sunday on X that $86,000 remains an important level for bitcoin to hold, noting that a deeper pullback could come into play if that support gives way.

Markets appear to be pausing ahead of a dense macroeconomic calendar in the coming days. In the U.S., investors will be watching a series of employment indicators, including the unemployment rate, ADP employment data and weekly jobless claims, alongside November inflation data, December flash PMI readings, and speeches from Federal Reserve Governors Stephen Miran and Christopher J. Waller, for clues on the path of interest rates.

Macro-sensitive traders are also closely monitoring developments in Japan, where the Bank of Japan (BOJ) is widely expected to raise interest rates at its upcoming policy meeting on Thursday. According to a Reuters report published Friday, markets have largely priced in a move that would lift the rate to 0.75% after Governor Kazuo Ueda signaled that inflation has remained above the central bank’s 2% target for more than three years.

While Japanese borrowing costs would remain low by global standards even after such a move, the report noted that the BOJ is likely to emphasize that monetary conditions will remain accommodative and that future rate increases will depend on how the economy responds to each increase. Still, expectations of tighter policy have drawn attention to the potential impact on yen-funded carry trades, a source of liquidity that has supported global risk assets, including cryptocurrencies.

For now, crypto markets remain range-bound, with subdued volumes and limited conviction as traders await clearer signals from upcoming U.S. data and central bank decisions.

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• Barclays forecasts lower crypto trading volumes in 2026, with no clear catalysts to revive market activity.
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• Regulatory clarity, including pending market structure legislation, could shape long-term market growth despite near-term headwinds.

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