Bitcoin (BTC) made an attempt to rally late over the weekend, but most of those modest gains were quickly erased during early Monday trading in the U.S., with prices stabilizing quietly around the $90,000 mark for the rest of the day.
As U.S. stock markets closed, Bitcoin was trading near $90,500, marking a roughly 1% decline over the previous 24 hours.
Major altcoins also found it difficult to maintain their earlier advances. Ethereum’s Ether (ETH) dipped slightly but still managed to outperform somewhat by reaching its highest relative value against Bitcoin in over a month. Other notable performers included privacy-focused Zcash (ZEC) and Canton Network (CC), which caters to institutional blockchain needs; both saw double-digit percentage increases. However, overall market sentiment was subdued as reflected by a 0.8% drop in the CoinDesk 20 Index.
While cryptocurrency movements remained muted, yields on long-term government bonds surged amid concerns that instability in Japanese bonds might ripple across global markets. The yield on U.S. 10-year Treasuries jumped to 4.19%, hitting a three-month peak; similarly, government debt from the UK and other European nations experienced sell-offs. Meanwhile, Japan’s 10-year bond yield continued climbing toward nearly 2%, levels unseen for almost twenty years.
The equity markets in America also declined throughout Monday: The S&P 500 fell by half a percent while Nasdaq dropped by about three-tenths of one percent—both dampening overall risk appetite among investors.
This week’s spotlight will be on what is expected to be this year’s final Federal Reserve meeting. Although traders have fully priced in a quarter-point interest rate cut already, any hints regarding future policy direction or liquidity adjustments could trigger volatility when Wednesday arrives.
“If financial conditions ease further or if there is additional weakening of the US dollar,” explained LMAX strategist Joel Kruger “it could act as positive momentum for crypto assets; conversely any hawkish surprises concerning how fast or how much accommodation continues from Fed officials may intensify downward pressure within cryptocurrency markets.”
Structural Challenges Facing Bitcoin
Despite bouncing back somewhat since November lows, analysts at Bitfinex caution that Bitcoin faces fundamental weaknesses along with declining spot demand.
The divergence between BTC remaining rangebound while traditional equities like S&P approach record highs signals growing disparity and relative fragility within crypto compared with conventional risk assets — according to their recent report released Monday.
- Sustained outflows from U.S.-listed spot bitcoin ETFs show traders selling into rallies rather than accumulating positions — evidenced by strongly negative Cumulative Volume Delta data across major exchanges;
- An estimated seven million bitcoins are currently held at unrealized losses—a bearish indicator reminiscent of consolidation phases seen during much of last year;
- Although monthly capital inflows remain mildly positive at approximately $8.69 billion based on Net Realized Cap Change metrics—they are significantly below prior peaks—providing only limited protection against downside risks;
Taken together these factors paint a picture of vulnerability heading into year-end according to Bitfinex experts:
“With diminishing spot demand,” they concluded “the market now confronts substantially reduced buying support which lowers immediate price floors and heightens sensitivity towards external shocks including macroeconomic volatility plus any further tightening measures affecting financial conditions.”
Bitcoin (BTC) made an attempt to rally late over the weekend,…
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