Leading cryptocurrencies rose on Tuesday, while the stock market slipped as the Federal Reserve released minutes from its December meeting.
Bitcoin, Ethereum On Track For Worst Q4 Since 2018
Bitcoin rose but failed to break past the $89,000 barrier, while trading volume for the apex cryptocurrency plummeted 24% in the last 24 hours. Ethereum again stalled at $3,000 amid a 27% dip in trading volume.
The two heavyweights are poised for their weakest fourth quarter performances since 2018, with Bitcoin down 22.37% and Ethereum losing 28%.
Meanwhile, shares of cryptocurrency-linked stocks Bitmine Immersion Technologies Inc. (NYSE:BMNR) and Coinbase Global Inc. (NASDAQ:COIN) closed down 2.87% and 0.93%, respectively, during the regular trading session.
Benzinga Edge delivers real-time stock alerts, trade ideas, and professional investing tools to help you navigate the market. Learn more about BMNR and COIN and start your investment journey today.
Nearly $180 million was liquidated from the cryptocurrency market in the last 24 hours, according to Coinglass, with roughly equal amounts of longs and shorts erased.
Bitcoin’s open interest fell 2.28% in the last 24 hours. A drop in open interest, coinciding with a rise in spot price, could indicate short covering, meaning bearish traders are closing their short positions.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.99 trillion, following an increase of 1.26% in the last 24 hours.
Stocks Lose Further Ground
Stocks dived further on Tuesday. The Dow Jones Industrial Average lost 94.87 points, or 0.20%, to end at 48,367.06. The S&P 500 shed 94.87 points to settle at 6,896.24, while the tech-heavy Nasdaq Composite closed down 0.24% at 23,474.35.
The Federal Reserve’s December 2025 meeting minutes revealed divisions among officials, with some pushing for a 50 basis point rate cut, though the committee opted for a 25 basis point reduction.
“Most participants judged that further downward adjustments to the target range for the federal funds rate would likely be appropriate if inflation declined over time as expected,” the minutes read.
Traders are pricing in a 85% chance that the current rate, 3.50% to 3.75%, will remain unchanged at the January meeting, according to the CME FedWatch tool.
Will The New Year Bring A Nice Surprise?
Michaël van de Poppe, a widely followed cryptocurrency analyst and trader, examined Bitcoin’s ongoing battle at the 21-day simple moving average around $89,000.
“That’s [21-day MA] been the crucial trigger prior to previous rallies and that will be the crucial one again,” Van De Poppe said.
“Let’s see whether the markets are going to give a nice little surprise on New Years Day with a breakout of Bitcoin above the 21-Day MA,” the analyst speculated.
Killa, another trader with a sizable following on X, analyzed a historical pattern where Bitcoin typically drops 5-8% in the week following Consumer Price Index releases.
The analyst forecasts a dip toward lows ahead of the upcoming CPI report on Jan. 13, triggering a selloff that day, followed by a strong bullish rally.
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Photo Courtesy: Marc Bruxelle on Shutterstock.com
BTCGrayscale Bitcoin Mini Trust (BTC)$39.030.41%Overview$BTCBitcoin$88511.000.14%$DOGEDogecoin$0.12340.12%$ETHEthereum$2975.690.18%$SOLSolana$125.340.38%$XRPRipple$1.88-0.03%BMNRBitMine Immersion Technologies Inc$27.800.29%COINCoinbase Global Inc$231.01-0.25%MSTRStrategy Inc$155.40-0.13%Market News and Data brought to you by Benzinga APIs
