Daily Market Update: Bitcoin Holds Above $85,000 Support as Stock Futures Rebound

TLDR

• Bitcoin hovers around $86,400 with analysts watching the $81,300 True Market Mean as a crucial support level that could impact the entire crypto market
• Major cryptocurrencies show tight correlation with Bitcoin over 90 days, meaning a break below $81,300 could trigger broader selling
• Ethereum declined 3.6% to $2,830 in 24 hours and lost 15% for the week, falling faster than Bitcoin
• Stock index futures climbed overnight with S&P 500 futures up 0.3% and Nasdaq 100 futures gaining 0.4%
• Micron Technology reported earnings that beat expectations, forecasting profits nearly double analyst estimates for next quarter

Bitcoin extended its decline Wednesday, hovering near $86,400 as traders monitor a key price threshold that market analysts say could shape the crypto market’s next move. The digital currency slipped 1% during the day and has fallen approximately 6.5% over the past seven days.

Research firm Glassnode points to Bitcoin’s True Market Mean at $81,300 as an important support zone. This level historically separates routine price corrections from periods of heavier selling across the digital asset market.

The $81,300 mark has become increasingly relevant since the flash crash in October. Historical data from Glassnode indicates that extended trading below this threshold has previously led to broader selling pressure throughout the crypto ecosystem.

Major cryptocurrencies have tracked Bitcoin closely during the past 90 days. This tight relationship suggests that a sustained drop below the True Market Mean could spread losses across the market.

Ethereum Slides More Than Bitcoin

Ethereum changed hands around $2,830 on Wednesday, falling 3.6% in the prior 24 hours. The world’s second-largest digital currency declined approximately 15% during the week, dropping more sharply than Bitcoin.

Large-cap digital assets continue moving in sync with Bitcoin. A sustained drop below $81,300 could extend weakness into the broader market after high-volatility tokens already experienced sell-offs.

Stock Index Futures Post Gains

US stock index futures moved higher overnight as traders looked past Wednesday’s technology sector decline. S&P 500 futures increased 0.3% while Nasdaq 100 futures advanced 0.4%.

Dow Jones Industrial Average futures posted modest gains. Technology stocks suffered losses Wednesday following news that Oracle lost support for a planned $10 billion data center project.

Oracle shares fell alongside other tech companies including Nvidia and Broadcom. The declines sparked questions about momentum in artificial intelligence investments.

Micron Technology delivered encouraging results Wednesday evening with earnings that exceeded forecasts. The company, which supplies components to Nvidia, projected profits for the coming quarter at nearly twice analyst predictions.

Economic Data and Central Bank Decisions Ahead

Investors await Thursday’s consumer price index report for November. The inflation measurement was originally set for release on December 10 but faced delays.

The CPI data may prove less accurate than typical releases because of the US government shutdown. October’s data collection faced disruptions, which means month-over-month comparisons will be unavailable.

The missing data will complicate efforts to assess inflation trends. Federal Reserve officials currently appear more concerned with employment conditions than inflation pressures.

Fed governor Chris Waller expressed openness to interest rate reductions Wednesday ahead of the CPI report. Given these circumstances, traders are paying less attention to the inflation figures than they typically would.

Thursday also brings weekly initial unemployment claims data. The employment figures have shown increased volatility since the federal shutdown began.

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