The cryptocurrency market is struggling with rising liquidations ahead of the US economic results announcement

The digital asset sector is experiencing a period of intense volatility. On the eve of the release of the US GDP growth data scheduled for December 23, position liquidations of $250 million were recorded. Bitcoin came under pressure, with its recent valuation at $90,130, marking a 3.36% decrease over the past 24 hours. Ethereum moved in a similar direction, registering a change of -6.66% to $3,000, while XRP weakened by 5.74% to $1.91.

The cryptocurrency market capitalization shrank to $2.96 trillion, a decrease of 2.46%. Volatility is permeating the entire ecosystem, with the Fear & Greed Index reaching a level of 24, reflecting extreme fear among market participants. At the same time, the total open interest in derivatives reached $129 billion, up 1.1%, suggesting that speculators maintain aggressive positioning despite increasing uncertainty.

Liquidity flows and macroeconomic factors influence sentiment

The macroeconomic calendar brings a series of key data releases. The Federal Reserve injected $6.8 billion of liquidity into the financial system on December 22. The key turning point is the release of US GDP data scheduled for today, which traditionally impacts market volatility. Another trigger will be the weekly unemployment claims data on December 24, while US markets will remain closed on December 25 due to Christmas. Also on the horizon is the announcement of China’s M2 money supply index on December 26, adding another layer of uncertainty to the macroeconomic assessment.

Concerns about weakening demand in the market

Analysts signal emerging signs of fatigue on the demand side. On-chain activity measurements indicate a decline in the number of active addresses on the network, reflecting reduced participation by market participants. The divergence between trading volume and price direction, observed as early as August, remains unchanged. At that time, prices were rising while volume was consistently falling—a signal that historically preceded periods of correction.

Observations regarding the network’s state suggest that participant engagement is clearly weakening. Before the market can rebuild significant gains, a phase of consolidation and a return to healthy fundamentals will be necessary. Current conditions impose on investors the need to remain vigilant amid increasing volatility and declining market interest.