Americas Crypto Market Update: Bitcoin at Risk of Losing Crucial Support Level Amid Struggling Risk Assets

By Omkar Godbole (All times ET unless otherwise specified) The current downturn in risk assets is attributed to the surge in the dollar index and Treasury yields following the release of the nonfarm payrolls report on Friday, coupled with the impact of the Palisades Fires on the insurance sector and certain P&C companies. Bitcoin has seen a 2% decline, currently trading within the critical support range of $90,000 to $93,000, while alternative cryptocurrencies have experienced more significant losses. ETH has dropped to its lowest level since December 21, and the prevailing risk-off sentiment has overshadowed XRP's previously bullish technical outlook (refer to the Technical Analysis section). Notably, whales appear to have accumulated XRP through South Korea-based Upbit over the weekend. The AI coins sub-sector has been the worst performer over the past 24 hours. In traditional markets, S&P 500 futures indicate a negative opening, accompanied by continued volatility in the British pound and emerging market currencies. Despite the risk-off sentiment, Michael Saylor has hinted at a potential new bitcoin purchase, sharing an update on MicroStrategy's bitcoin purchase tracker. The impact of this move on the market remains to be seen. According to Valentin Fournier, an analyst at BRN, 'The firm's purchase last Monday, valued at approximately $100 million, had limited market impact but underscores the company's ongoing demand.' Given current conditions, the risk of BTC breaking below the support zone seems high, as some investment banks believe the Fed's rate-cutting cycle has concluded, with Bank of America suggesting a potential rate hike. Some observers predict that prices will decline to $70,000 before a potential rally. The 30-day moving average of the Coinbase-Binance BTC price differential, which often marks significant price peaks, has dropped to its lowest level since at least 2019, indicating weaker demand in the US. In the near term, the crypto market is likely to focus on President-elect Donald Trump's inauguration on January 20 and the ongoing FTX claim distributions, as per Coinbase Institutional. Key Events to Watch: Token Events: Conferences: Token Talk by Oliver Knight Derivatives Positioning: Market Movements: Bitcoin Statistics: Technical Analysis: Crypto Equities: ETF Flows: Spot BTC ETFs: Spot ETH ETFs: Source: Farside Investors, as of January 10. Overnight Flows: Chart of the Day: While You Were Sleeping: In the Ether