Bitcoin Near $90,000 as Markets Wait for Fed Decision
Bitcoin (BTC), down 1.73%, stayed close to $90,000 on Tuesday. Crypto markets were quiet as traders waited for the Federal Reserve’s last policy announcement of the year. Analysts say Jerome Powell’s comments might be more important than the rate cut itself.
Recently, BTC has moved only between $88,000 and $93,000 because of lower liquidity and a pause in broader risk markets. ETH stayed around $3,100, BNB slipped to $886, and Solana traded near $132. The total crypto market cap dropped to around $3.1 trillion as uncertainty continued.
ETF Flows Show Rotation, Not Panic
Even though the market was quiet, ETF flows gave more insight:
- Bitcoin ETFs saw $60 million in net outflows on Monday.
- ETH, SOL, and XRP ETFs saw inflows of $35M, $1M, and $38M.
BRN Head of Research Timothy Misir said this means investors are being selective, not panicking. Interest is moving toward altcoins while BTC lags.
He noted that selling pressure has increased, but Bitcoin’s price remains stable — a sign that the market might be starting to recover, although confidence is still low.
“Active addresses are stabilizing, and transfer volume is rising,” Misir said. “The market is healing, but not fully healthy yet.”
Markets Frozen Before the Fed Meeting
Misir called this a “binary macro week,” meaning traders are waiting for the Fed’s decision before making big moves.
Most investors expect a rate cut, supported by weak job data and low consumer confidence. But high household pessimism and record U.S. consumer credit numbers make the outlook uncertain.
Nansen analyst Aurelie Barthere said the expected rate cut is mostly already priced in, so Powell’s message will matter more. She expects the Fed to keep its long-term interest rate forecast around 3%, showing internal disagreement.
She also said Bitcoin will likely stay near $91,000 right after the meeting.
CF Benchmarks CMO Mark Pilipczuk added that the Fed’s outlook is causing a clear difference between Bitcoin and altcoins — with altcoins lagging. Futures markets predict a cut on Wednesday but no additional cuts until June.
However, he said Bitcoin could rise if the Fed hints at another cut before June, especially if the labor market weakens further and inflation stays in the 2–3% range.
Derivatives, Liquidity, and Year-End Volatility
QCP Capital noted that weekend price swings — BTC jumping from $88,000 to $92,000 and ETH from $2,910 to $3,150 — show how thin liquidity is becoming as the year ends.
Despite these big moves, liquidations remained low.
Open interest in perpetual futures has dropped sharply:
- BTC open interest: down more than 44% since October
- ETH open interest: down more than 50%
This shows that many traders have stepped out of the market.
Retail interest is also weakening. Google search trends for “crypto” and “BTC” have fallen back to bear-market levels.
