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US Market Events This Week: Why Bitcoin and Ethereum Traders Should Stay Cautious

Published by
Sahana Vibhute

Crypto markets are heading into the final trading days of the year with thin liquidity and a closely watched US macro calendar. While price action across risk assets remains relatively contained, several key events this week could influence short-term sentiment, particularly for cryptos that tend to react sharply during low-volume conditions.

FOMC Minutes in Focus

On Tuesday (Dec 30), the Federal Reserve will release the minutes from its latest policy meeting. Traders will look for clues on the timing and pace of potential interest rate cuts in 2026. Any shift in tone could influence risk appetite across equities and crypto markets, especially with liquidity already thinning.

Labor Market Data to Test Sentiment

On Wednesday (Dec 31), Initial Jobless Claims data will offer fresh insight into the health of the US labour market. Softer data could reinforce expectations of monetary easing, while stronger readings may keep rate-cut optimism in check and pressure risk assets in the short term.

Holiday Liquidity Adds Risk

US stock markets will remain closed on Thursday (Jan 1) for New Year’s Day, further reducing liquidity. In such conditions, even modest surprises can lead to exaggerated price moves, particularly in 24/7 markets like crypto.

BTC & ETH: Key Levels Traders Are Watching

For Bitcoin, the focus remains on whether the price can hold above the $89,500–$90,000 support zone during these data releases. A dovish read from the FOMC minutes or weaker jobless claims could allow BTC price to reclaim $90,500, opening the door for a push toward the $93,000–$93,650 resistance zone. On the downside, a loss of $89,500 could drag Bitcoin back toward $87,500–$88,000, especially if liquidity remains thin.

Ethereum is expected to track Bitcoin’s direction but with slightly higher volatility. ETH is consolidating above key support near $2,900–$3,000. A positive macro reaction could help ETH price reclaim the $3,200–$3,300 resistance area, strengthening the bullish setup into early 2026. Failure to hold the $2,900 level, however, may expose a deeper pullback toward $2,700–$2,650.

What This Means for Crypto Markets

With liquidity thinning into the New Year, these events are more likely to trigger short-term volatility spikes rather than establish sustained trends. Traders are expected to stay selective, focusing on key technical levels while waiting for clearer confirmation once liquidity normalises.

Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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