Derived from Blockbeats, on December 8, QCP reported that Bitcoin (BTC) fluctuated sharply between $88,000 and $92,000 on Sunday, while Ethereum (ETH) surged from $2,910 to $3,150. As year-end liquidity declines, the market has become highly sensitive to small capital flows. Despite the volatility, liquidation volumes remain low, indicating reduced market participation and positioning, with perpetual contract open interest for both assets down 40–50% from October peaks. Retail sentiment has returned to bearish levels. Meanwhile, supply is tightening, with approximately 25,000 BTC withdrawn from exchanges in the past two weeks. ETF and corporate holdings now exceed exchange balances, and ETH exchange reserves have hit a decade low, suggesting long-term capital is quietly accumulating as retail investors exit. Market attention is now shifting to the Federal Reserve’s FOMC meeting on Wednesday. While a 25-basis-point rate cut is widely expected, the central bank’s balance sheet guidance will determine the direction of risk assets at year-end. BTC remains in a $84,000 to $100,000 range, with deteriorating market depth and the holiday season approaching, any breakout could trigger a new major trend.
Bitcoin and Ethereum Experience Sharp Volatility Amid Year-End Liquidity Downturn
KuCoinFlashShare
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.