Bitcoin’s Early Weekend Slide
Bitcoin didn’t wait for its usual Sunday evening slump this time around. The cryptocurrency started its weekend decline early, continuing an overnight tumble that pushed it back to the $90,000 level during early U.S. trading hours. This move essentially reverses much of the bounce we saw from last Sunday night’s panicky drop, which had taken bitcoin all the way down to $84,000 at one point.
I think what’s interesting here is the timing. Typically, we’ve seen these weekend drops happen later, but this one came earlier. Maybe it’s the holiday season affecting trading patterns, or perhaps there’s something else at play. The market seems to be finding its own rhythm, regardless of what we might expect.
Altcoins Follow Bitcoin Lower
Ethereum’s ether moved about 2% lower in concert with bitcoin’s decline. But other leading altcoins took a harder hit. Solana, Cardano’s ADA, Dogecoin, and Hype all dropped more than 4% each. That’s a pretty significant move for a single session, especially when you consider how volatile these assets can be anyway.
Crypto-related equities followed suit, with sharp declines across the board. MicroStrategy, Galaxy Digital, CleanSpark, and American Bitcoin all saw drops ranging from 4% to 7%. It’s one of those days where everything in the crypto space seems to be moving in the same direction, and that direction is down.
Trading Patterns and Economic Data
According to Velo data, there’s been a consistent pattern over the past six months. The most bearish time of day tends to be the hour before the U.S. market opens and the first hour of U.S. trading. Friday has also been the most consistently bearish day of the week during this period.
But there might be some relief coming. University of Michigan Consumer Sentiment numbers released at 10 am ET could lighten the bearish mood for the remainder of the day. The December 1-Year Consumer Inflation Expectation fell to 4.1% from 4.5% previously, and the 5-Year Consumer Inflation Expectation dropped to 3.2% from 3.4%.
These private surveys have taken on new significance lately, given the dearth of official economic data. And interestingly, bitcoin did manage a modest bump back to the $91,000 area in the minutes following the report. It wasn’t much, but it was something.
What Comes Next?
This action could reinforce prior analyst forecasts that instead of a rapid rebound, we’re looking at more consolidation ahead toward year-end for the crypto market. The bounce from last week’s lows was nice while it lasted, but it seems the market might need more time to find its footing.
I’m watching to see if this becomes a pattern of lower highs and lower lows, or if we’re just seeing normal volatility within a broader trend. The inflation expectation numbers were better than expected, which might help sentiment, but crypto markets have their own logic sometimes.
One thing’s for sure – when bitcoin moves, everything else tends to follow. Today’s action shows that connection remains strong, for better or worse.
