Cryptocurrency markets trade sideways as investors await macro clarity

Crypto markets continue to see range-bound movement, with the flagship digital token hovering around the $91,000 mark on Tuesday, extending a phase of consolidation after the sharp volatility witnessed earlier this month. This range-bound movement, analysts said, reflects a market that is neither decisively risk-on nor meaningfully risk-off.

 

Ethereum is trading near $3,100, broadly tracking Bitcoin but continuing to behave as a higher-beta asset. Among other large crypto assets by market capitalisation, performance has been uneven. Solana has shown relative resilience, while XRP has underperformed over the past week. BNB has remained comparatively stable, reflecting its utility-driven demand profile.

 

Broader sentiment remains cautious

The immediate backdrop, Vikram Subburaj, CEO, Giottus, said, is a cautious recalibration of expectations around global monetary policy. With key US inflation data due this week, investors across asset classes, Subburaj believes, are refraining from aggressive positioning, and crypto markets are no exception.

 

Meanwhile, one notable development has been the return of modest inflows into US spot Bitcoin exchange-traded funds (ETFs). After several sessions of significant redemptions in early January, spot Bitcoin ETFs recorded net inflows of about $187 million on January 12. This suggests that institutional investors are re-entering near the low-$90,000 levels rather than waiting for a deeper correction. Ether ETFs also saw net inflows of around $85 million on the same day.

 

Blockchain data presents a similarly measured picture. On-chain activity levels have softened, with fewer active addresses and lower transaction fees. However, this has been accompanied by a rise in transfer volumes. Historically, such patterns tend to emerge when larger participants are reallocating capital rather than when retail participation is accelerating or capitulating.  ALSO READ | Selfie, 'penny drop' mandated as KYC for crypto customers in India 

Meanwhile, derivatives positioning also reflects a more defensive stance. “Demand for downside protection remains elevated, but the extreme risk aversion seen during earlier liquidation events has eased. This reinforces the view that markets are settling into a range rather than preparing for a sharp directional move. The immediate focus is on US inflation data, with the December CPI release due today and producer-price data later in the week. These prints will shape expectations around the Federal Reserve’s rate path in the first quarter of 2026. Softer data may allow Bitcoin and equities to regain momentum,” Subburaj said.

 

Nischal Shetty, founder, WazirX, on the other hand, said crypto prices are consolidating after a strong run in 2025, largely driven by traders’ expectations of rate cuts by the US Federal Reserve this year. However, according to the latest analysts’ reports, that may not materialise. This, Shetty believes, could impact market sentiment, as anticipation of rate cuts was what the industry had pinned its hopes on for a major breakout in top tokens.

 

“With the chances of the same now reduced or uncertain, the market could experience short-term volatility. The market may not be favourable for over-leverage, as seen in October last year. Because of macro events, risk-off sentiment towards equities and crypto could continue, indicating more turbulence,” Shetty said.

 

Shetty, however, believes that Bitcoin and Ethereum are still showing strength, especially with institutional money via ETFs acting as long-term support and preventing speculation of major price dips.

Bitcoin finds support at $90,000–$89,000

Amid this, the world’s largest digital asset by market capitalisation, Bitcoin, was trading at $91,472, down 0.67 per cent, with a 24-hour trading volume of $35.6 billion, according to CoinMarketCap data. The asset fluctuated between $90,055 and $92,227 in the last 24 hours. Notably, Bitcoin is around 27 per cent shy of its all-time high of $126,198 scaled on October 7, 2025.

 

From a technical point of view, Subburaj said the first level to watch is $90,000, with $89,000 flagged as a key near-term support zone, cautioning that a sustained break below this could open room for deeper pullbacks.

 

“On the upside, repeated failures near $92,000–$92,400 keep resistance intact. A decisive reclaim improves the odds of a move back toward higher cost-basis zones that on-chain models place near $99.1k, a level many desks track as a mean-reversion target. Investors should size entries carefully, avoid leverage into macro prints, and use $90K/$89K as risk markers,” Subburaj said.

Ethereum faces resistance at $3,250–$3,300

Ethereum is trading near $3,100 after a prolonged decline from the $4,700–$4,800 zone. Overall, the market is not bullish yet, but selling pressure has clearly slowed. Prices are now moving sideways, a phase that typically precedes a strong move.

 

At last check, ETH was trading at $3,118.91, down 1.16 per cent, with a 24-hour trading volume of $18.03 billion, according to CoinMarketCap data. The token oscillated between $3,068 and $3,162 over the past 24 hours.

 

Harish Vatnani, head of trade, ZebPay, said Ethereum is at a critical decision zone. The symmetrical triangle formation indicates an impending expansion in volatility.

 

“Traders should avoid anticipating direction and instead wait for confirmation through breakout and volume. Until then, the market remains neutral, with equal probability of upside or downside movement,” Vatnani said.

 

According to Vatnani, near-term support for ETH lies around $3,000, while $2,750–$2,800 acts as a strong support zone. On the upside, immediate resistance is seen at $3,250–$3,300, while major resistance lies in the $3,750–$3,800 range.

 

Overall, muted capital inflows, analysts said, are likely to keep ETH range-bound, while Bitcoin’s relative strength continues to support broader sentiment, though there is no clear breakout signal yet.