The cryptocurrency market shows resilience as Bitcoin stabilizes below the $94,000 level, buttressed by significant exchange-traded fund (ETF) inflows that counterbalance wider economic uncertainties. Despite a neutral market sentiment and macroeconomic indicators showing a manufacturing downturn, investor appetite for cryptocurrency exposure remains considerable.
Recent data reveals that the Institute for Supply Management (ISM) manufacturing purchasing managers index (PMI) has fallen for the third consecutive month, registering 47.9 in December. This figure marks the lowest reading since October 2024, highlighting contraction in the manufacturing sector and contributing to cautious macroeconomic conditions.
Amid this environment, Bitcoin ETFs attracted a noteworthy $697.3 million in net inflows on Monday alone, while Ethereum ETFs recorded $168.1 million in net inflows. These influxes substantiate sustained institutional or retail interest, sustaining upward pressure on major digital assets.
| Cryptocurrency | Ticker | Price |
|---|---|---|
| Bitcoin | BTC | $93,760 |
| Ethereum | ETH | $3,239 |
| Solana | SOL | $139.1 |
| XRP | XRP | $2.37 |
Technical analysis from cryptocurrency commentators offers insights into possible near-term price trends. One analyst, known as the Cryptomist, suggests Bitcoin may be forming a falling wedge pattern, a technical formation typically indicative of a pending breakout. The pattern implies there could be a final downward correction approaching the support level before a potential upward surge toward the mid-$95,000 range. However, following this movement, there may be an emergence of bearish pressures.
Market analyst Michael van de Poppe highlights that the recent substantial ETF inflows diminish the likelihood of a pronounced correction. With over $1 billion flowing into Bitcoin ETFs in the first two trading days, van de Poppe anticipates a short period of consolidation before another push upward, potentially targeting the psychological $100,000 threshold and even higher resistance zones.
Regarding Ethereum, van de Poppe notes that the asset has recently tested and held its 21-day moving average, which serves as a confirmation of short-term support levels. Coupled with consistent ETF inflows, this supports a trend continuation scenario for Ethereum.
XRP also features prominently within current market activity. According to Cryptoinsightuk, XRP has closed its highest daily price candle since November 15. While the momentum on lower time frames appears overbought, the overall strength exhibited makes it challenging to forecast an immediate retracement. XRP's historical behavior suggests that once upward momentum gains traction, it can accelerate rapidly.
Solana's trajectory is being carefully watched, with Crypto Tony remarking that the cryptocurrency must sustain levels above $132 to maintain a constructive outlook. Should this support zone hold, the next potential target indicated is around $145.
Complementing these developments, the broader meme coin sector has experienced a mild expansion, rising by approximately 0.5% and preserving an aggregate market capitalization near $52 billion.
| Cryptocurrency | Ticker | Price |
|---|---|---|
| Dogecoin | DOGE | $0.1505 |
| Shiba Inu | SHIB | $0.059305 |
Market observers such as BitGuru characterize Dogecoin's current consolidation as a structured pause following a liquidity sweep, interpreting this as a reset of momentum rather than a demonstration of weakness.
Notably, data from Shibburn indicates a significant surge in Shiba Inu's token burn rate, with a 278.9% increase observed over a single day. This activity resulted in the permanent removal of 15.2 million SHIB tokens from circulation, potentially contributing to long-term supply tightening.
Overall, while caution persists amid manufacturing sector contraction and uncertain economic conditions, robust ETF inflows and favorable technical setups support a constructive outlook for Bitcoin and selected altcoins. The mixed price action and momentum dynamics across different digital assets underscore the complexity of the current market environment.