Bitcoin stays near $90,000 ahead of key US employment data and BOJ interest rate decision

Source: Yellow Original Title: Bitcoin stays near $90,000 ahead of key US employment data and BOJ rate decision

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Current Market Situation

Bitcoin traded close to $89,600 in the early hours of Sunday (UTC), a 0.9% drop over 24 hours. The leading cryptocurrency remains approximately 7.6% below its recent high, despite a brief rally above $94,000 following the Federal Reserve’s rate decision on December 10.

Ether changed hands around $3,104, showing relative strength with weekly gains exceeding 2%, outperforming Bitcoin.

Major altcoins, including Solana, XRP, Dogecoin, and Cardano, all declined on Sunday. These assets continue to show double-digit losses for the month, highlighting persistent weakness across the crypto market.

The total cryptocurrency market capitalization stood at $3.15 trillion on Sunday, down 0.8% in 24 hours. Trading volumes remained around $89 billion, reflecting the typical reduced liquidity of weekend sessions.

Bitcoin’s dominance stayed near 57%, emphasizing the ongoing concentration of capital in the largest digital asset.

Key Macroeconomic Factors

Markets face a critical week of macroeconomic catalysts that could determine Bitcoin’s short-term direction. US investors will monitor unemployment rates, ADP employment data, weekly jobless claims, November inflation readings, and December preliminary PMI figures.

Federal Reserve governors, including Christopher Waller, will deliver speeches that may offer clues about the trajectory of interest rates.

Critical Bank of Japan Decision

The Bank of Japan’s policy meeting on December 18 and 19 has attracted particular attention among cryptocurrency traders. The 50 economists surveyed by Bloomberg expect the BOJ to raise its benchmark rate to 0.75% from 0.5%.

This would mark Japan’s first rate hike since January 2025 and the highest borrowing cost in about 30 years. Governor Kazuo Ueda has indicated that inflation above the 2% target for over three years justifies a more restrictive policy.

The rate increase in Japan could impact yen-funded carry trade operations, a liquidity source that has historically supported global risk assets, including cryptocurrencies.

Market Outlook

The Federal Reserve’s rate cut on December 11 to the 3.50%-3.75% range triggered a “sell the news” reaction following cautious comments from Chair Jerome Powell. Markets now expect only two rate cuts in 2026, instead of the three previously forecasted.

Bitcoin stabilized throughout the week after initial volatility around the policy decision. Price action remains within a range as traders await clearer directional signals from upcoming economic data and central bank communications.