TLDR:
- Investor sentiment remains stuck in the “extreme fear” zone despite slight rebounds.
- Spot Bitcoin ETFs recorded net inflows of $457 million on Wednesday.
- S. inflation fell to 2.7%, a figure lower than expected by financial analysts.
Thursday’s session was marked by mixed nuances in the cryptocurrency market, with volatility taking center stage. While it is true that the sector’s total capitalization rose by 2%, reaching $3.05 trillion, the most significant assets failed to strongly extend the rebound recorded mid-week.
The benchmark asset, Bitcoin, is trading near $88,200, hitting strong resistance after failing in its attempt to consolidate above the $90,000 psychological mark.
Ethereum, for its part, showed superior performance among the top ten assets. This asset rose by 3.6%, placing it near $2,950. Nonetheless, according to a Glassnode report, the technical structure of the crypto market today remains fragile.
Regarding Bitcoin, analysts point out that it remains trapped in a range defined by support at $81,000 and constant rejection near $93,000, limited by selling pressure that stalls any significant bullish momentum.
Macroeconomic Factors and Institutional Capital Flow
On the institutional front, SoSoValue data reveals a positive reversal in the flow of exchange-traded funds. Spot Bitcoin ETFs added $457 million on December 17, offsetting two days of massive outflows. However, Ethereum ETFs continued to record net outflows, albeit more modest, totaling $22.4 million.
At the macroeconomic level, the crypto market today is reacting calmly to lower-than-expected U.S. inflation. The Consumer Price Index (CPI) for November stood at 2.7% year-over-year, surpassing cooling expectations.
Despite this encouraging data, prediction markets like Polymarket maintain a 70% probability that the Federal Reserve will not make changes to interest rates in January, keeping traders in a “wait and see” stance while total liquidations in the sector reach $376 million.
