Bitcoin Tests $111K as Market Awaits Key Economic Data
Bitcoin Stalls as Traders Brace for Data Week
Bitcoin (BTC) traded around $111,500 on Monday, consolidating as market participants awaited key macroeconomic data releases for directional cues. The crypto market is closely watching upcoming U.S. data and central bank decisions.
Other major cryptocurrencies showed mixed performance:
- Ether (ETH): Traded near $4,312.
- XRP: Held at $2.96.
- BNB: Valued at $880.
- Solana (SOL): Climbed to $218.
- Dogecoin (DOGE): Outperformed, extending its weekly gain to 24 cents, fueled by anticipation of a U.S.-based memecoin ETF.
Market Sentiment and Analysis
Augustine Fan, head of insights at SignalPlus, noted that Bitcoin was underperforming compared to its peers, as well as equities and gold. He cited softer buying in digital asset trusts and a pullback in on-ramp activity at centralized exchanges.
Fan added, “The short-term picture looks a bit more challenging, and we would prefer a more defensive stance. Keep an eye on DAT premia compressing and the risk of negative convexity on the downside.”
Macroeconomic Factors in Play
Lukman Otunuga, senior market analyst at FXTM, highlighted the importance of the coming week’s data. “Markets are entering a decisive week as US data and central bank decisions converge,” he said.
A weaker CPI report or downward revision in payrolls could strengthen the case for Federal Reserve rate cuts, potentially weakening the dollar and boosting alternative assets. Conversely, persistent inflation could argue for patience and increase volatility across crypto markets.
Investor Positioning and Long-Term Outlook
Justin d’Anethan, founder of Poly Max Investment, observed that investors are hesitant to turn bearish but also wary of buying the dip too early. He noted the cooled speculation around MicroStrategy's potential S&P 500 inclusion, despite public companies holding approximately 1 million BTC.
“In the bigger picture, BTC consolidating around 111K is a fine place for long-term believers. Pullbacks of 10% to 15% inside bull runs have not historically broken the trend,” d’Anethan stated.
Key Factors to Watch
- CPI and PPI Data: Monitor for insights into the policy path.
- Dollar Strength: Observe for its impact on cross-asset risk appetite.
- DAT Premium: Watch for potential selling pressure related to redemptions.