Bitcoin retreated approximately 1.2% during Monday's session, settling near $70,366 after fluctuating between $68,371 and $72,024. The cryptocurrency's movement reflected broader market caution as traders prepared for a week packed with significant U.S. economic data.
Macroeconomic Pressures Weigh on Crypto
Digital assets continue to trade with high sensitivity to traditional financial indicators, including interest rate expectations and currency movements. A softer U.S. dollar added complexity to the trading environment, with analysts noting ripple effects from international developments, including policy shifts in Japan and China.
Market observers highlighted the challenge of thin liquidity, which can exacerbate price swings when automated trades are triggered. "The volatility in bitcoin is likely to persist until the investor base shifts toward more long-term, resilient participants," noted Allianz chief economic adviser Mohamed El-Erian.
Mixed Signals from Crypto Equities and Funds
Morgan Stanley initiated coverage on MARA Holdings with an underweight rating and an $8 price target, citing concerns over bitcoin mining economics. Meanwhile, U.S.-listed spot bitcoin exchange-traded funds displayed inconsistent flows as the market sought direction.
Attention remains fixed on upcoming U.S. economic releases, particularly inflation and retail sales figures, along with a postponed jobs report scheduled for Wednesday. A stronger-than-expected data print could lift bond yields and pressure risk assets, while dollar strength might dampen demand for dollar-denominated tokens.
The Federal Reserve's next policy decision on March 18 looms as a key event for market participants assessing the path of monetary easing this year.
