On Monday, Bitcoin (BTC) fluctuated around the $111,500 mark, maintaining a narrow trading range as investors assess macroeconomic factors for guidance on their strategies.
Ether (ETH) was priced close to $4,312 while XRP remained steady at approximately $2.96. BNB traded at about $880 and Solana’s SOL experienced an increase to reach $218. Dogecoin (DOGE), on the other hand, extended its weekly rise of 11.6%, reaching 24 cents as anticipation builds for the launch of the first-ever memecoin ETF in the U.S., set to begin trading this Thursday.
The overall market sentiment appeared cautious. Augustine Fan, head of insights at SignalPlus, noted in a communication with CoinDesk that “Crypto prices have been relatively stagnant over the past week; however, BTC has noticeably underperformed compared to both its peers and traditional equities along with spot gold.” He pointed out reduced buying activity in digital asset trusts and a decline in new user engagement on centralized exchanges.
Fan further elaborated that “the short-term outlook seems somewhat challenging; we would advocate for a more conservative approach given the tough seasonal trends ahead.” He emphasized monitoring DAT premiums compressing and potential risks associated with negative convexity.
Lukman Otunuga from FXTM highlighted that macroeconomic developments could shift current market dynamics: “This week is pivotal as U.S. economic data coincides with central bank decisions.”
He suggested that if inflation indicators such as CPI cool down or if payroll figures are revised downward, it could bolster arguments for Federal Reserve rate cuts—potentially weakening the dollar and benefiting alternative assets like cryptocurrencies. Conversely, persistent inflation data might necessitate patience from investors while increasing volatility across crypto markets.
This tug-of-war is reflected in investor positioning strategies. Justin d’Anethan from Poly Max Investment remarked that “Investors find themselves torn between adopting a bearish stance—which risks missing out on potential gains—or jumping into purchases too soon during dips.” He also mentioned diminishing discussions surrounding Strategy’s possible inclusion in S&P 500 which impacted corporate treasury sentiments; nevertheless public companies currently hold around 1 million BTC collectively.
D’Anethan concluded by stating that “From a broader perspective, Bitcoin stabilizing near $111K is favorable for long-term supporters since historical trends show pullbacks of 10% to 15% during bullish phases do not typically disrupt upward momentum.”
For traders looking ahead, key indicators include monitoring CPI and PPI data regarding policy direction; observing dollar movements can provide insights into cross-asset risk appetite; lastly keeping an eye on DAT premiums may signal any abrupt selling due to redemptions.