## Macroeconomic Uncertainty Amplifies Downward Pressure in the Cryptocurrency Market

This week's scheduled macroeconomic events are exerting significant downward pressure on the crypto sector. The release of US GDP data expected on December 23, along with Federal Reserve communications and Chinese M2 money supply data, has triggered a cascade of liquidations totaling $250 million in the past 24 hours. The Crypto Fear & Greed Index has hit 24, reflecting widespread pessimism among market participants.

Bitcoin is under pressure, currently trading at $90,800 (+0.05% in the last 24 hours), while Ethereum and XRP show even weaker performance, with the latter down 2.19% at $2.05. The total crypto market capitalization has decreased to $2.96 trillion, indicating a widespread withdrawal of liquidity from digital markets.

## The Derivatives Paradox: High Open Interest Despite Weakness

Despite the uncertain climate, total open interest in crypto derivatives markets has increased by 1.1%, reaching $129 billion. This suggests that traders have not closed their positions but are maintaining significant exposures while awaiting clarity from macroeconomic data. Of the $250 million liquidated, $192 million came from long positions, indicating particular pressure on bulls.

The Federal Reserve injected $6.8 billion into the financial system on December 22, but this liquidity has yet to find its way into digital assets. The economic calendar remains packed with key events: weekly unemployment benefit claims on December 24, US markets closing on December 25, and Chinese M2 money supply data on December 26.

## Network Activity Contracts: Analysts' Warning Signs

CryptoQuant analyst Mignolet highlighted that trading activity and network participation are showing worrying signs of slowdown. The number of active addresses is decreasing sharply, an indicator that traditionally precedes periods of consolidation or more significant correction.

As early as August, one of the first warning signs of downside risk was the persistent decline in buy volume divergence on futures. Although prices continued to move upward at that time, trading volume was steadily decreasing. This divergence has not yet reversed significantly, and further contraction of active addresses confirms reduced network engagement.

According to CryptoQuant's analysis via Mignolet, the market may need more time to stabilize and complete a healthy correction cycle. The combination of significant liquidations, increasing volatility, and weakened technical signals suggests caution in the coming days.

## Ethereum and XRP Reflect Overall Sentiment

Ethereum is trading at $3,120, up 0.57% in 24 hours, showing relatively resilient performance compared to BTC. However, XRP shows weakness with a 2.19% decline, underperforming the overall market. These differentiated movements reflect divergences in positioning strategies across different market segments.

Volatility remains the dominant theme, with traders awaiting signals from central banks. In the short term, focus remains on upcoming economic data that could determine the extent of further liquidations or, conversely, mark the point of inflation in the ongoing correction.