Bitcoin Near $90K as Thin Liquidity Keeps Market Range-Bound Ahead of Fed Guidance
Bitcoin hovered around $90,000 following a weekend of sharp but short-lived swings, highlighting the impact of thin year-end liquidity. QCP reported that perpetual open interest in BTC and ETH has fallen nearly 50% since October, reducing the market’s capacity to absorb large directional trades.
Polymarket data shows traders have fully priced in this week’s 25-basis-point Fed cut and expect a pause in January, suggesting a shallow easing path rather than a full cycle. This dynamic helps explain why BTC remains range-bound, with major moves likely to come from guidance surprises rather than the rate decision itself.
“The Fed’s cut may grab headlines, but the bigger story is the growing divergence among major central banks,” said Gracie Lin, CEO of OKX Singapore. “The BOE is split, the ECB is steady, and the BOJ is preparing to tighten at yields last seen in 2007, all amid rising friction in key Asian economies.”
Lin added that recent clearing of leveraged positions has improved market structure, removing overcrowded trades and allowing bitcoin to push higher. Following this reset, BTC briefly touched $91,000 as global capital adjusted to uneven macro signals.
Market Snapshot:
- BTC: Fell toward $90,000 after early U.S. trading erased weekend gains, pressured by rising bond yields and weaker equities.
- ETH: Slightly lower but outperformed BTC, hitting its strongest relative level against bitcoin in over a month.
- Gold: Edged down as traders awaited the Fed’s meeting and guidance on future moves.
- Nikkei 225: Asia-Pacific stocks dipped, tracking Wall Street declines amid Fed-focused caution.
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