Crypto hit the red this time, and it was serious. Bitcoin fell to $77,620, XRP dropped to 1.43, and ether slid to $2,320. Dojekoyn also couldn’t hold at 0.10. In short, 85 out of the 100 largest tokens by coin market cap recorded losses.

Privacy coins were hit particularly hard—Monero fell by 1.73%, and zcash even showed a slight gain of +4.60%, but overall the picture was bleak. The smart contract index dropped by 6%, bringing the accumulated decline over the year to 28%. All of this unfolded against the backdrop of macroeconomic uncertainty, which won’t let the market breathe.

The problem is that demand is selective, and traders are cautious. Bitcoin rose to 70,000 over the weekend, but couldn’t hold. Macroeconomic data—CPI at 2.4% year over year, expectations of Fed rate cuts—everything is keeping the market in a wait-and-see mode. The yield on 10-year bonds fell to 4.05%, but that didn’t help crypto.

Next week will be packed. The Fed meeting protocol in January and the PCE index are what traders will be watching for fresh signals. If inflation continues to fall, it could change the game. Meanwhile, in traditional markets, the Japanese yen has started to rise—this could be a catalyst for bitcoin bulls, as the yen and crypto have reached a record correlation. We’ll see what the next move brings.