Tuesday brought a bit of welcome green to the cryptocurrency markets while stocks continued their slide, creating an interesting divergence as the Federal Reserve's latest meeting minutes hit the tape. Leading digital assets posted modest gains even as traditional markets struggled with the implications of December's monetary policy discussions.

Here's how the major cryptocurrencies looked at 8:35 p.m. ET:

A Quarter To Forget For Crypto's Heavyweights

Bitcoin managed to push higher but couldn't quite punch through the $89,000 barrier, even as trading volume collapsed by 24% over the previous 24 hours. Ethereum found itself in a similar boat, stalling once again at the psychologically important $3,000 level while volume dried up 27%.

The real story here is what's happening on a quarterly basis. Both Bitcoin and Ethereum are heading toward their weakest fourth quarter performances since 2018. Bitcoin has shed 22.37% for the quarter, while Ethereum has done even worse, dropping 28%. That's a sobering statistic considering Q4 is typically when crypto markets put on their best show.

The pain extended to crypto-adjacent stocks during regular trading hours. Bitmine Immersion Technologies Inc. (BMNR) closed down 2.87%, while Coinbase Global Inc. (COIN) slipped 0.93%.

The liquidation scene tells its own story. Nearly $180 million evaporated from cryptocurrency markets in the last 24 hours, according to Coinglass. Interestingly, roughly equal amounts of long and short positions got wiped out, suggesting the pain was distributed fairly evenly across both bulls and bears.

One technical detail worth noting: Bitcoin's open interest fell 2.28% over the last 24 hours. When open interest drops while spot prices rise, that's often a sign of short covering. Essentially, traders who bet against Bitcoin are closing those positions, which can create upward price pressure.

Top Gainers (24 Hours)

The global cryptocurrency market capitalization stood at $2.99 trillion, marking a 1.26% increase over the previous 24 hours.

Traditional Markets Continue Their Descent

While crypto found some footing, stocks weren't so lucky. The Dow Jones Industrial Average dropped 94.87 points, or 0.20%, finishing at 48,367.06. The S&P 500 shed 0.24% to settle at 6,896.24, and the tech-focused Nasdaq Composite closed down 0.24% at 23,474.35.

The catalyst for Tuesday's stock market weakness came from the Federal Reserve's December meeting minutes, which revealed some fascinating internal divisions. Not everyone was on board with the cautious approach. Some officials pushed for a more aggressive 50 basis point rate cut, though the committee ultimately settled on a 25 basis point reduction.

"Most participants judged that further downward adjustments to the target range for the federal funds rate would likely be appropriate if inflation declined over time as expected," the minutes read.

The market has essentially made up its mind about January. According to the CME FedWatch tool, traders are pricing in an 85% probability that the current rate of 3.50% to 3.75% will stay put at the upcoming meeting.

Could New Year's Day Deliver A Surprise?

Michaël van de Poppe, a cryptocurrency analyst and trader with a substantial following, has his eyes locked on Bitcoin's dance with its 21-day simple moving average, which sits right around that $89,000 level causing all the trouble.

"That's [21-day MA] been the crucial trigger prior to previous rallies and that will be the crucial one again," Van De Poppe said.

"Let's see whether the markets are going to give a nice little surprise on New Years Day with a breakout of Bitcoin above the 21-Day MA," the analyst speculated.

Another trader known as Killa, who commands a sizable following on X, dug into historical patterns and found something interesting. Bitcoin typically experiences a 5-8% drop in the week following Consumer Price Index releases.

Based on this pattern, the analyst expects a move toward recent lows ahead of the upcoming CPI report scheduled for January 13. The forecast calls for a selloff on report day itself, followed by what could be a strong bullish rally afterward. It's the kind of pattern that, if it plays out, could set up an interesting entry point for those brave enough to catch the falling knife.