Bitcoin remains in a consolidation phase as fiat-to-stablecoin conversions stay low, as noted by Matrixport. Independent analyst Markus Thielen attributes the dip in the cryptocurrency market to the US Federal Reserve's recent hawkish stance.
Current Market Situation
Matrixport highlighted a 'significant slowdown' in fiat-to-crypto on-ramps. This trend was reflected in the latest 7-day stablecoin minting indicator, which showed decreased activity leading into the Christmas holidays.
Independent Analyst's Insight
Independent analyst Markus Thielen attributed the recent dip in the cryptocurrency market to the Federal Reserve’s hawkish stance in mid-December, which likely affected investor sentiment. He warned that Bitcoin and other cryptocurrencies are expected to continue consolidating, with conversions from fiat to stablecoins remaining low.
Divergent Trends in Options Market
In a broader market analysis, Bybit highlights divergent trends in Bitcoin and Ethereum’s options markets. After December’s options expirations, Bitcoin’s open interest was rebalancing, while demand for Ethereum call options increased. Bitcoin’s implied volatility is at 57%, suggesting heightened risk expectations.
As long as conversion volumes remain low, Bitcoin's market is likely to stay in consolidation, as supported by Matrixport data and independent analyst insights.
