Bitcoin Steady at $88K as Asian Markets Dip in Thin Holiday Trade

I wake up in the morning to find out that Bitcoin’s price has been sitting at $88,000. I remember the October event when over nineteen billion dollars in leveraged positions got liquidated in a single day. This was a huge hit for the market, leaving traders a bit cautious about risking their money, and now spot markets are reflecting this caution along with derivatives traders quickly trying to reduce risk.

I look at the quarterly flow & price action to get an understanding of what’s happening right now. I notice that there have been about six billion dollars in outflows from spot Bitcoin exchange-traded funds (ETFs) in the fourth quarter. This means that people are removing their money from Bitcoin, causing its price to stay below ninety thousand dollars.

Now I check the Asian markets to see what’s happening. And I see that the trading volumes in Hong Kong are lower than normal right now due to holiday closures. This is causing the Hang Seng Index to go a bit lower. It seems like we’ll have to wait a bit for the markets to get back in action in Japan and South Korea.

When I look at the global equity performance, I notice that equities have seen significant gains over the past year. The MSCI All Country World Equity Index even set a new high on December 26th. And in the United States, stocks were kinda mixed during the thin holiday trading, but it looks like Meta shares actually increased after the announcement of acquiring the AI startup Manus.

I flip through the Federal Reserve Outlook to get the latest information. And I see that they had a meeting where they discussed possibly lowering interest rates. But it seems like most people think they will hold off on it for now.

For the crypto market, the focus is on whether we’ll see fresh influxes in early January or if the thin liquidity will keep prices locked in the $80,000s for a while longer.

In conclusion, I observe that Bitcoin’s price is holding steady near $88,000, despite cautious market conditions. I also notice that Asian markets are experiencing a dip as holiday closures approach, and global equities have seen significant gains over the past year. The next key points for the crypto market will be potential inflows in early January and the outcome of the Federal Reserve’s next policy meeting.