Crypto Market Eyes Relief Bounce as Traders Await U.S. CPI, Jobs Data and BOJ Rate Decision 📊

The crypto market is showing early signs of stabilization after recent sell offs, with traders now focused on a packed macro calendar that could decide the next move. Key catalysts this week include U.S. CPI inflation data, jobless claims, and the Bank of Japan’s interest rate decision.

🔑 Key Highlights

✅ Crypto market stabilizes despite lingering selling pressure

✅ Traders watch U.S. CPI inflation and jobless claims closely

✅ Bank of Japan rate decision could impact global risk assets

✅ Seasonal Santa Rally optimism may support crypto prices

Why it matters

The total crypto market cap slipped 1.5 percent to 3.13 trillion dollars, but trading activity remains strong at 90.9 billion dollars, signaling continued market participation. Bitcoin is trading near 89,000 dollars, down about 1 percent, while Ethereum is holding firmer at around 3,100 dollars, with only a modest decline.

Despite stable volumes, sentiment remains fragile. The Fear and Greed Index dropped further to 16, firmly in Extreme Fear territory. While this shows caution, it remains above levels seen during last month’s peak panic.

Market direction now hinges on macro data. Analysts say U.S. CPI inflation will be critical for shaping interest rate expectations. October’s lower than expected CPI reading helped fuel a short term Bitcoin rally, as traders priced in greater odds of rate cuts.

U.S. jobless claims are also in focus. Rising claims could strengthen expectations for further monetary easing. In late November, unexpectedly weak labor data coincided with a Bitcoin price rebound.

Global attention is also on Japan’s central bank. Recent surveys show business confidence among manufacturers at a four year high, increasing speculation that the Bank of Japan may raise rates. Economists warn that tighter policy in Japan could pressure global markets, with past BOJ hikes coinciding with 20 to 25 percent Bitcoin drawdowns.