Analyst: Crypto market enters "frozen" state ahead of Fed decision, early signs of recovery emerging

On December 9, according to The Block, BRN Research Director Timothy Misir stated that US cryptocurrency ETF capital flows reflect “selective positioning rather than a broad risk-off,” and although Bitcoin (BTC) continues to underperform, altcoins are attracting capital attention. The market is showing early signs of recovery, but confidence has not yet formed. “The number of active addresses is stabilizing, and transaction volume is increasing, which indicates that the market is recovering, but there is still a gap before it becomes truly healthy,” Misir wrote in a report on Tuesday. “Early signs of recovery have emerged, but market confidence is still lacking.” Misir described this week as a “macro binary week,” with traders generally choosing to wait and see before the FOMC meeting results are announced on Wednesday. Expectations of rate cuts are rising, supported by weak ADP employment data and deteriorating consumer confidence, but pessimism among US households and record-high consumer credit levels are complicating the demand outlook.