Crypto Market Sees Decline in Long Position Appetite Amid Key Week for Traders  

• The funding rates for Bitcoin, Ethereum, and Solana indicate a lesser tendency to take long positions due to a hesitated market sentiment. 
• Solana funding rates remain negative and have been decreasing since December, just like the rest of the market. 
• Major market-moving events such as the Federal Reserve meeting and the inflation data will be released this week. 

From funding rates in major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Dogecoin (DOGE), there seems to be no increased intensity in the longs. The current levels are quite a ways off from those seen during the market rally in late November and early December of 2024, according to data from Glassnode on-chain analytics. 

Funding rates calculated using the 168-hour moving average are considered an important indicator of market sentiment. High funding rates typically indicate bullish expectations, while lower rates signal bearish outlooks. Bitcoin, while showing some positive momentum last week, has not sustained its previous highs. Meanwhile, Solana continues its downward trend, with funding rates steadily declining since December. 

Declining Appetite for Long Positions 

Glassnode’s analysis emphasizes that the overall lack of demand for long positions reflects caution among traders. This restrained sentiment comes despite Bitcoin initially showing positive momentum earlier in the week. Solana, however, remains under notable pressure, with its funding rates continuing to diminish, highlighting sustained bearish sentiment. 

The shift in market dynamics has also impacted other top assets like Ethereum and Dogecoin, with both seeing a reduction in funding rates. XRP has similarly experienced a slowdown, mirroring the broader market trend. 

Economic Events Weigh on Market Outlook 

This comes amid a somewhat sensitive period for the financial markets; the past week was important, and the upcoming one also looks significant. The Federal Reserve is expected to release its key policy decisions in its meeting on Wednesday next week in January. Furthermore, the new inflation numbers are expected on Friday, which should give a further perspective on the economic situation. 

These events occur at a time when the cryptocurrency market is already under some selling pressure. The current decline has been boosted by profit-taking before the Federal Open Market Committee meeting. 

In the current report, Bitcoin is down by 3.83% in the last 24 hours and is trading at $100,954 after having dipped to $97,715 on the day. Other assets have been in Free Fall as well with Solana dropping by 8.46% and Dogecoin by 10.46%. Ethereum and XRP have also suffered losses of up to 6%, which reflects the general problems of the market.