Americas Crypto Market Outlook: Caution Prevails as Investors Await Direction

By Omkar Godbole (All times ET unless stated otherwise) Following yesterday's downturn, the cryptocurrency market is attempting to recover, with on-chain metrics indicating potential capitulation in bitcoin. Certain tokens, such as MakerDAO's MKR, have seen significant gains of 20% over 24 hours due to the DAO's buyback and burn mechanism. The native token of the Story Protocol blockchain, IP, has also experienced a substantial increase of nearly 40%. The token's price has more than doubled in two weeks after being listed on South Korean exchanges. Other notable performers include Celestia's TIA, along with XDC, QNT, and HYPE. According to data from Lookonchain, whales have been purchasing the dip in the HYPE token. Meanwhile, XRP is holding on to a crucial Fibonacci level, keeping hopes of further gains alive for bulls. Matthew Hougan, chief investment officer of Bitwise Asset Management, believes the crypto market is adjusting to the end of the recent memecoin frenzy, which may be replaced by more productive sectors such as stablecoins, real-world assets, and DeFi. "However, until these sectors start making an impact, the loss of momentum will create a drag on the market," Hougan stated on X. On the macroeconomic front, the optimism seen after the November 4 election is being replaced by caution, as reflected in Tuesday's release of the US consumer confidence index. The gauge dropped to an eight-month low, with one-year inflation expectations being the highest in 1.5 years. President Donald Trump's tariffs were cited as a primary concern in almost every household and business survey. The gloomy sentiment and a strengthening yen may restrict the upside in risk assets for the time being. Earlier this week, the head of Belgium's central bank, Pierre Wunsch, warned that the ECB risks oversleeping and implementing too many rate cuts. The Fed is unlikely to implement quantitative easing anytime soon, despite discussing the end of quantitative tightening in the January meeting minutes. Looking ahead to key events, the Senate Banking Committee, led by Senator Cynthia Lummis, is set to revisit crypto regulations during Wednesday's scheduled hearing titled "Exploring Bipartisan Legislative Frameworks for Digital Assets." Stay informed. Key Areas to Watch Token Events Conferences Token Talk By Francisco Rodrigues Derivatives Positioning Market Trends: Bitcoin Statistics: Technical Analysis Crypto Equities ETF Flows Spot BTC ETFs: Spot ETH ETFs Source: Farside Investors Overnight Flows Chart of the Day While You Were Sleeping In the Ether