Bitcoin Hangouts at Around $95k as Markets Await Jobs and Inflation Reports
Bitcoin's Momentum Slows Down Prior to a Busy Macroeconomic Week, Amidst Anticipated Trade Deals
Investors kept an eye on trade negotiations, anticipating progress ahead of economic reports this week. The U.S. President's tariffs on 18 key trading partners are suspected to impact inflation and the economy.
Bitcoin held steady, hovering around $95,000, seeing a minor 0.4% increase over the previous day. Crypto data company CoinGecko reported this figure. Meanwhile, Ethereum and Solana experienced slight losses, dropping 0.5% and 1% to $1,800 and $149 respectively.
U.S. Treasury Scott Bessent commented on Monday that the administration is working on tailored deals with these trading partners, with China being an important focus. However, China's Foreign Ministry spokesman Guo Jiakun stated that there's no current consultation or negotiation on tariffs between the two nations.
Data on jobs and inflation, expected on Tuesday and Wednesday respectively, may shed light on the impact of the tariffs. Economists predict a decrease in job openings and a 0.4% increase in inflation as measured by the PCE Price Index.
If the data shows that the tariffs aren't worsening inflation or causing significant economic slowdown, markets may see renewed activity, according to a report by crypto market maker Wintermute.
Stocks were slightly in the green on Wall Street, with the S&P 500 and Nasdaq rising 0.2% and 0.05% respectively. The price of gold increased 1.8% to around $3,350 an ounce.
Greg Magadini, director of derivatives at crypto data provider Amberdata, suggested that Bitcoin may move parallel to stocks in the short-term due to hopes of progress in trade negotiations, but in the long-term, it could become a hedge against the U.S. dollar, rallying on uncertainty.
While cryptocurrencies aren't directly influenced by trade negotiations or tariff impacts on inflation and the economy, broader economic conditions and overall market sentiment play a significant role in their price fluctuations.
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Enrichment Data:
Overall:
Although trade negotiations and tariffs don't directly impact cryptocurrencies, they can influence broader economic conditions. Below are three key factors that generally affect crypto prices:1. Market Sentiment: Trade tensions and tariffs create economic uncertainty which may affect investor confidence, causing cryptocurrencies to be seen as both a hedge against inflation and a risk asset.2. Inflation and Monetary Policy: Tariffs increase inflation by raising the cost of imported goods, which may prompt central banks to adjust monetary policies. This adjustment could affect the attractiveness of cryptocurrencies.3. Economic Stability: Economic instability due to trade negotiations can lead to a volatile market that impacts cryptocurrency prices.
Recent Trends:
- Bitcoin (BTC): Predictions suggest BTC could reach $210K by 2025, but price fluctuation is more greatly influenced by overall market trends rather than direct trade negotiations.
- Ethereum (ETH): Early 2025 saw significant declines in Ethereum prices, driven by broader market conditions rather than direct tariff impacts.
- Solana (SOL): Solana's price is influenced by network adoption, technological advancements, and overall market sentiment. The coin faces resistance at $148-$153 but has potential for growth due to strong ecosystem development.
Source Summaries:1. Solana price forecasts highlight potential price increases based on network usage and market sentiment.2. Solana faces resistance but displays potential for growth; Bitcoin predictions include reaching $210K.3. Ethereum experienced significant declines in early 2025 due to broader market conditions.4. Solana's price is influenced by network utility, adoption, and sentiment.5. The potential for Solana to reach $400 in 2025 is based on improving network conditions.
- Bitcoin remains stationary, hovering around $95k, despite ongoing trade negotiations and their potential implications for job and inflation reports.
- Cryptocurrencies, such as Ethereum and Solana, may experience minor fluctuations in response to broader economic conditions, not just direct tariff impacts.
- Crypto market maker Wintermute predicts that renewed market activity could occur if economic reports show the tariffs aren't worsening inflation or causing significant economic slowdown.
- Overall market sentiment significantly affects cryptocurrency prices, particularly Bitcoin, which could become a hedge against the U.S. dollar in long-term scenarios.
- Trade tensions and tariffs can impact inflation and monetary policy, which in turn could affect the attractiveness of cryptocurrencies.
- Despite the Chinese Finance and Business sectors being primary focus in trade negotiations, CoinGecko reported no major impact on the crypto market yet.
- The price of Solana slightly dropped to $149, while Ethereum experienced a 0.5% decline to $1,800 according to CoinGecko data.
- An 0.4% increase in overall inflation, as predicted by economists, could potentially influence Bitcoin's price trajectory in the market.
- Despite cryptocurrencies not being directly influenced by trade negotiations, the broader economic conditions and the overall market sentiment play a crucial role in their price fluctuations.
- In the digital asset world, digital assets like altcoins like Eth and BTC and Decentralized Applications (dApps) like Rubin also find a place, contributing to the nearly $2 trillion crypto market.
