Bitcoin is on track for a weekly gain, yet it has struggled to generate sustained momentum even after the Federal Reserve delivered its third rate cut of the year. Following the central bank’s decision to lower interest rates by 25 basis points last Wednesday, the world’s largest digital asset has not registered a clear upward breakout, continuing to oscillate within the tight $88,000 to $93,000 band that has defined much of its December performance. While the Fed’s tone remains generally supportive of risk assets, the signal of a more cautious approach to further easing in 2026 stopped short of the dovish shift many traders had hoped for, resulting in subdued price action compared to previous easing cycles.
In the broader market, price action reflects a distinct lack of risk appetite. As of Sunday, Bitcoin drifted below the $90,000 mark, trading around $89,600—marginally higher on the week but still down approximately 7.6% over the past month. While Bitcoin consolidates, Ether has shown relative strength, outperforming the market leader on a weekly basis despite changing hands near $3,104. However, the wider sector remains under pressure; major assets like Solana, XRP, Dogecoin, and Cardano continue to nurse double-digit losses over the past month, underscoring persistent weakness outside of the two largest digital assets.
Market participation also points to caution, with total digital asset market capitalization standing at nearly $3.05 trillion amid thin weekend liquidity. Bitcoin dominance continues to hover near 57%, highlighting a flight to quality as investors remain selective. From a technical perspective, the $86,000 level is now a critical support area to watch; failure to hold this threshold could trigger a deeper pullback, especially given the lingering macro uncertainty and the Fed’s projection of slowergrowth.
Global macroeconomic shifts are further complicating the landscape for investors. Markets are closely monitoring developments in Japan, where expectations that the Bank of Japan (BOJ) will raise interest rates are growing. This potential tightening of monetary policy has drawn attention to the yen-funded carry trade—a key source of global liquidity that has historically supported risk assets. The anxiety surrounding these global shifts, combined with the Fed’s internal divisions, has kept the digital asset market range-bound with limited conviction.
Looking Ahead: A Dense Macro Week
Investors should brace for potentially higher volatility in the coming days as the market faces a dense macroeconomic calendar. The primary focus will be on the U.S. economy, with a series of critical data points set for release, including the unemployment rate, ADP employment figures, weekly jobless claims, and November inflation data. Additionally, market participants will be scrutinizing speeches from Federal Reserve Governors Stephen Miran and Christopher J. Waller for any further clues regarding the future path of interest rates.
Beyond the U.S., the spotlight will turn to the Bank of Japan’s policy meeting on Thursday. Markets have largely priced in a rate hike to 0.75%, a move that could tighten global liquidity conditions. While the BOJ is expected to emphasize that conditions remain accommodative, any hawkish surprises could impact the yen carry trade and ripple through to the digital assets space. Until these key economic signals provide clarity, the market is likely to remain in a holding pattern.