Cryptocurrencies remain calm; Bitcoin consolidates at the $21,000 level

The cryptocurrency market is poised to regain activity on Tuesday. Bitcoin (BTC) has risen slightly in the last 24 hours and consolidates above $21,100. Ethereum (ETH), meanwhile, posts slight declines that leave the largest 'altcoin' above $1,550 and remains at pre-FTX crash levels.

Investors took a small break on Monday after a day of no trading activity in the U.S. for Martin Luther King Day and a day of moderate gains in Asia and Europe. "It's been a pretty frantic start to the year, so investors may be taking the opportunity to catch their breath," stated Craig Erlam, senior market analyst at Oanda. However, everything could be about to change.

Some experts point out that the next few days could be a turning point for the crypto market after a spate of positive macroeconomic data, especially following the good reading of the U.S. December CPI, which catapulted digital asset prices. The rises were particularly notable for Bitcoin, as it was trading below $17,000 a week ago and has risen more than 25% so far this year.

"It's unclear whether this is a sign that it has bottomed and is experiencing a resurgence or just a brief bounce, but it's clear that there are still some very bullish traders. It's going to be an interesting few weeks," explained Erlam.

Erlam also stressed that the advance of the results season on the other side of the Atlantic "will either reinforce that sense of hope or spoil the party before it really gets started." "So far, companies have been reluctant to lay off staff, which has kept the labor market tense even when certain economic indicators have weakened. A poor earnings season could undermine hopes for a soft landing that seems more possible now than it has for many months," he noted.

He also remarked that we will have to keep an eye on the statements that central bankers will make at the World Economic Forum in Davos, especially after they were reluctant to deviate from their stance despite announcing little more than that they will moderate rate hikes at upcoming meetings.

Other analysts are also highlighting the effect that a reduction in the U.S. spending ceiling could have on the market as Republicans continue to call for; it is worth noting that Treasury Secretary Janet Yellen warned that they could reach this limit this upcoming Thursday and asked Congress to extend it by more than $30 trillion to avoid "irreparable damage to the U.S. economy".

In other market news, Binance coin (BNB) and Ripple (XRP) have risen nearly 1%, while polygon (MATIC) has soared 2.6% and Polkadot (DOT) has increased more than 3%. Cardano (ADA) also recorded moderate gains, as well as Solana (SOL), which is at a two-month high.