Matrixport: Bitcoin Steadies as Traders Stay Defensive Ahead of FOMC, Holiday Liquidity

Published: 2025-12-09 05:23:36 |

Matrixport says Bitcoin is stabilizing near current levels but market sentiment remains cautious ahead of the upcoming FOMC meeting and year‑end deleveraging. Options pricing implies about 5% downside risk and funds continue hedging for further pullbacks. Matrixport highlights that short-term bounces are being used to reduce positions rather than signal fresh rallies, and that liquidity typically tightens into the holiday period — increasing the chance of compressed volatility and limited post‑FOMC breakouts. Key technical level: $91,500. Separately, Ethereum co‑founder Vitalik Buterin praised the Ethereum Foundation’s progress on peer‑to‑peer networking via PeerDAS, pointing to improvements in propagation, resilience and network privacy work. Market snapshot shows BTC and major altcoins trading slightly lower as year‑end flows and macro events keep traders defensive.

Neutral

The news signals caution rather than directional conviction. Matrixport’s view — options implying ~5% downside risk, active hedging, year‑end deleveraging and tighter holiday liquidity — points to limited upside and risk of short squeezes or sharp moves on low liquidity. That tends to suppress aggressive buying and encourages position trimming and hedging, producing range‑bound or choppy markets in the short term. The identified $91,500 level provides a near‑term technical reference for risk managers. Vitalik’s comments about PeerDAS are positive for Ethereum’s infrastructure and longer‑term network resilience, which is bullish for ETH fundamentals but unlikely to trigger immediate broad market rallies. Similar historical patterns: ahead of major Fed meetings and around year‑end, crypto markets often show reduced volumes and heightened sensitivity to news (e.g., late‑2022 and late‑2023 FOMC windows), producing compressed volatility and muted breakouts. Traders should expect short‑term neutral to slightly risk‑off price action, use smaller position sizes, monitor options skew/liquidity, and watch for decisive moves around the FOMC and the $91,500 technical level. Longer term, improved Ethereum networking is constructive for ETH but does not offset macro risk drivers.