Bitcoin and Ethereum experienced significant volatility due to thin year-end liquidity, with perpetual open interest (OI) for both cryptocurrencies dropping by 40–50% since October. Exchange reserves for Bitcoin and Ethereum have also reached multi-year lows, indicating reduced market depth. Investors are now focused on the upcoming Federal Open Market Committee (FOMC) meeting on Wednesday, where balance-sheet guidance is expected to play a crucial role. Bitcoin remains in a trading range between $84,000 and $100,000, reflecting the current market uncertainty.
Bitcoin and Ethereum Volatility Amid Low Liquidity and Falling Reserves
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