Bitcoin May Remain Volatile Below $95,000 Until Year-End, Possibly Boosting Altcoins, According to Analyst

Following its brief surge to $94,000, Bitcoin (BTC) $84,969.31 retreated to $92,000 during US trading hours on Thursday, maintaining its choppy, rangebound pattern after the significant fluctuations earlier in the week. Ethereum's ether (ETH) $2,797.89 held relatively steady, dipping only 0.7% and remaining above $3,100 in the afternoon. Among altcoins, XRP $1.8396, Hedera (HBAR), BCH $564.92, and the privacy-focused Zcash (ZEC) $383.99 led the decline with 4%-5% losses, while the CoinDesk 20 Index fell 2% overall. Despite the pullback, BTC continues to trade above the $85,000 support level established earlier in the week, suggesting the market may be settling into a holding pattern as liquidity decreases towards the year's end, according to Paul Howard, Senior Director of Trading at Wincent. "Cryptocurrency prices remain closely tied to global macroeconomic events," Howard noted. "Although December is typically a low-liquidity month, we've observed a higher floor being established over the past seven days around the $85,000 mark." Without significant new macroeconomic headlines, Howard anticipates more rangebound trading between $85,000 and $95,000 for the remainder of the month. "There's potential for altcoins to outperform, as they typically thrive in low-liquidity, high-volatility environments," he added. Market attention is now focused on Japan, particularly the US Federal Reserve and, more critically, the Bank of Japan (BoJ). According to Mark Connors, founder and chief macro strategist of Risk Dimensions, a bitcoin investment advisory, the BoJ's rate decision is the "key event" this month, as it will determine the future of the yen-funded carry trade, where investors borrow in yen to purchase higher-yielding assets. If the BoJ maintains its current rates, as Connors expects, it could reignite demand for risk assets and provide a boost to equities, bitcoin, and gold.