What to Know:
- Bitcoin is showing resilience, holding above $85,000 support despite recent volatility.
- Altcoins like XRP could outperform Bitcoin in the current low-liquidity, high-volatility environment.
- The Bank of Japan’s upcoming rate decision is crucial for global markets, potentially impacting Bitcoin and other risk assets.
Bitcoin’s price experienced a reversal, pulling back to $92,000 after briefly touching $94,000, reflecting ongoing choppy trading. Despite the dip, Bitcoin maintains a strong position above the $85,000 support level, indicating underlying market stability. This consolidation suggests a potential holding pattern as the year-end approaches and liquidity decreases.
The correlation between cryptocurrency prices and global macroeconomic events remains strong. With December typically being a low-liquidity month, a higher floor has been established around the $85,000 level for Bitcoin over the past week. Experts anticipate rangebound trading for Bitcoin between $85,000 and $95,000 for the remainder of the month, absent any significant new macro developments.
Attention is now focused on the Bank of Japan (BoJ) and its upcoming rate decision. The BoJ’s decision is seen as a key event that will determine the future of yen-funded carry trades. Should the BoJ maintain steady rates, as anticipated, it could stimulate demand for risk assets, positively influencing equities, Bitcoin, and gold.
Source: Original article
