BTC Slides Below $90K Amid Diminishing Investor Risk Appetite Ahead of Key Economic Data

Bitcoin dipped below $90,000 on Sunday as thin liquidity, broad altcoin weakness, and an upcoming wave of U.S. and global economic data kept traders cautious.

BTC $86,872.95 briefly fell under $90,000 during subdued trading, reflecting limited risk appetite ahead of a busy macro week. As of 12:40 p.m. UTC, bitcoin traded near $89,600, down roughly 0.9% over 24 hours, slightly higher on the week, but still down about 7.6% over the past month. Ether (ETH) $3,000.85 hovered near $3,104, down on the day but up more than 2% over the week, outperforming bitcoin.

Major altcoins also struggled, with Solana, XRP, Dogecoin, and Cardano (ADA) all posting declines and maintaining double-digit losses over the past month. The CoinDesk 20 Index (CD20) fell nearly 1%, highlighting persistent weakness across the broader market. Total crypto market capitalization stood around $3.15 trillion, down 0.8% over 24 hours, with trading volumes of roughly $89 billion, reflecting typically low Sunday liquidity. Bitcoin dominance remained near 57%, showing continued preference for the largest digital asset amid selective risk-taking.

Analysts warned that bitcoin’s consolidation could deepen if critical support levels fail. Crypto strategist Ali Martinez noted that $86,000 remains key, and a breach could trigger further downside.

Market attention is focused on a packed macro calendar. In the U.S., traders will track employment indicators, November inflation data, December flash PMIs, and speeches from Federal Reserve Governors Stephen Miran and Christopher J. Waller. Globally, the Bank of Japan is widely expected to raise rates to 0.75% at Thursday’s meeting, following Governor Kazuo Ueda’s comments on persistent inflation above 2%. While borrowing costs remain low by global standards, expectations of tighter policy could impact yen-funded carry trades, a key source of liquidity for global risk assets, including crypto.

For now, crypto markets remain range-bound, with muted volumes and limited conviction as traders await clearer signals from upcoming data and central bank actions.