Thin Liquidity and Macro Events Pose Risks for Bitcoin and Ethereum Traders
Crypto markets enter year-end trading with fragile liquidity and a packed US macro calendar. While price action remains subdued, key events this week could spark volatility—particularly forand, which often react sharply to thin-volume conditions.
The Federal Reserve’s FOMC minutes (Dec 30) take center stage, with traders scrutinizing any hints on 2026 rate-cut timing. A hawkish tilt could dampen risk appetite across equities and crypto markets. Meanwhile, Initial Jobless Claims data (Dec 31) may sway sentiment further—soft numbers could fuel easing hopes, while strong readings might pressure speculative assets.
Holiday-thinned liquidity exacerbates risks. With US markets closed Jan 1, crypto’s 24/7 trading could see exaggerated moves. Bitcoin’s ability to hold the $89,500–$90,000 support zone remains critical for maintaining bullish momentum.