Crypto Market Outlook: Americas Edition

By Jamie Crawley (All times are in Eastern Time unless stated otherwise) On Monday, Bitcoin (BTC) showed signs of a potential Thanksgiving week rally, briefly approaching $90,000 and providing a glimmer of hope that the recovery from below $85,000 over the weekend might be more than a short-term blip. However, this optimism was short-lived, as BTC fell back to $87,000 during the European morning on Tuesday. The CoinDesk 20 Index (CD20) also seemed to be embracing the holiday spirit, rising to nearly 3,000 before retreating by around 3% to 2,485.84. This indicates that across the cryptocurrency market, buyers are exercising caution rather than confidence. One possible explanation for this subdued mood could be the upcoming U.S. holiday period. With Thanksgiving just two days away, liquidity is expected to decrease, and risk-taking is likely to be minimized, according to Emir Ibrahim, an analyst at Zerocap, an Australian digital asset investment firm. Ibrahim noted that during last week's volatility, cryptocurrency traded as a high-beta proxy to the weakness in the U.S. tech industry. "The key dynamic is that all of BTC's weekly negative profit and loss came from the U.S. trading session, while the APAC and EU hours were mostly flat to positive," he wrote in an emailed comment. "This leaves little doubt that both the global credit crunch and the U.S. equity unwind are driving the downturn." Rather than establishing itself as a safe haven from the broader financial market turmoil, as its "digital gold" moniker might suggest, bitcoin is once again resembling the nervous younger sibling of the U.S. tech industry. The Crypto Fear & Greed Index remains firmly in the "extreme fear" category with a rating of 15, although this represents a slight improvement from yesterday's 12. It fell to a yearly low of 10 on Saturday. This movement does not guarantee that the floor is in place, but it suggests that the next directional moves are likely to be driven by macro shifts rather than trader sentiment. Another potential cause for optimism among bulls could be the average funding rate, a measure of the cost of holding both long and short positions. This has turned negative for the first time in a month, indicating an overabundance of bearish bets and, therefore, the potential for a classic short squeeze. This could lead to a continued price recovery as we head into December, provided that macroeconomic conditions do not disrupt it. Stay vigilant! Read more: For analysis of today's activity in altcoins and derivatives, see Crypto Markets Today. What to Watch For a more comprehensive list of events this week, see CoinDesk's Crypto Week Ahead. Token Events For a more comprehensive list of events this week, see CoinDesk's Crypto Week Ahead. Conferences For a more comprehensive list of events this week, see CoinDesk's Crypto Week Ahead. Market Movements Bitcoin Stats Technical Analysis Crypto Equities Crypto Treasury Companies ETF Flows Spot BTC ETFs Spot ETH ETFs Source: Farside Investors While You Were Sleeping