**Crypto Market Update: Bitcoin Holds Steady, Altcoins Face Pressure Amid Global Economic Shifts**

The crypto market had a quiet and somewhat shaky week. Bitcoin dipped below a key support level near $88,000, and many altcoins followed with notable drops. XRP, in particular, saw deeper declines. Traders and investors are showing signs of caution as big financial updates from around the world continue to shape market sentiment.

**Altcoins: A Possible Short-Term Bounce?**

Central banks across the globe are making moves that could affect the crypto space. The Bank of England just cut interest rates by 25 basis points. Meanwhile, the U.S. inflation report is still pending, and the European Central Bank is expected to keep its rates unchanged. Over in Japan, the Bank of Japan is likely to raise rates by 25 basis points.

These shifts in global interest rates are pushing crypto investors to be more careful with their money. As a result, markets have cooled off. However, some analysts believe this might just be a temporary dip.

Crypto market expert Michaël van de Poppe pointed out that Ethereum’s performance against Bitcoin (ETHBTC) is nearing a strong support level. This could open the door for a short-term bounce over the next couple of days.

If there are no major shocks—like an unexpected decision from Japan’s central bank—altcoins might see a brief rally before the usual January slowdown sets in. Many traders have already liquidated their short positions due to recent market declines. This could create an opportunity for upward momentum if sentiment flips.

Another analyst, Jelle, shared a chart showing that even after a 36% drop from its recent high, Bitcoin is still holding up well historically. Past downturns have been even steeper, so a recovery isn’t off the table—especially once uncertainty around legal rulings like the Supreme Court tariff case clears up.

**Crypto Headlines in the Last 24 Hours**

Here’s what else is happening in crypto:

– **Coinbase Expansion:** Coinbase is moving beyond just cryptocurrencies. They’re getting into stock trading with new equity spot and futures products. They’re also focusing more on stablecoins.

– **SEC Offers Guidance:** The U.S. Securities and Exchange Commission (SEC) has given temporary guidance around how broker-dealers can hold crypto assets. This is a small but important step toward clearer regulations.

– **Ethereum Supply Hits Record Low:** Ethereum’s exchange supply is now at its lowest level since 2016. This means fewer people are looking to sell their ETH on exchanges, which could be a bullish sign.

– **Stablecoin Adoption Grows:** World Liberty Financial (WLFI) is using its treasury to boost adoption of its new stablecoin, USD1.

– **Trump Talks Economy:** In a recent address, Donald Trump claimed the U.S. economy is set for massive growth. He said households could save between $11,000 and $20,000 per year in taxes under his plan.

**Final Thoughts**

The crypto market is currently in a wait-and-see mode as global economic policies shift and investors weigh their next move. While short-term volatility continues, developments from Coinbase and regulatory bodies like the SEC suggest that long-term clarity may be on the horizon.

Remember: cryptocurrency markets are highly volatile and risky. Always do your own research before making any investment decisions.