Bitcoin prices slipped below the $90,000 mark on Monday, as a broad risk off mood swept through global markets ahead of a packed week of US economic data and major central bank decisions.
AInvestors appeared reluctant to take fresh positions, opting instead for caution as uncertainty over interest rates and liquidity conditions weighed on sentiment.
The world’s largest cryptocurrency was last trading modestly lower during Asian hours, extending a period of sideways movement that has defined recent sessions.
Bitcoin Prices Remain Range Bound as Markets Await US Economic Clarity
Bitcoin prices have struggled to find a clear direction in recent days, reflecting investor hesitation ahead of critical US macroeconomic releases.
Markets are bracing for employment data, weekly jobless claims, November inflation figures, and December flash PMI readingsa, data that could significantly influence expectations for US monetary policy.
“Crypto markets are effectively in wait and see mode,” said a digital asset strategist at a Singapore-based trading firm. “Bitcoin prices are being driven less by internal crypto narratives and more by macro signals, particularly interest rates and liquidity.”
Speeches from policymakers at the Federal Reserve are also expected to shape near term sentiment. Investors will closely monitor remarks from Fed officials for any indication of how comfortable the central bank is with inflation trends and labour market resilience.
“With so much uncertainty around the true state of the US economy, it’s difficult for Bitcoin to break meaningfully higher,” the strategist added.
Central Bank Decisions Amplify Pressure on Bitcoin Prices
Beyond the US, global central bank meetings have added another layer of caution. Policy decisions from the European Central Bank, the Bank of England, and the Bank of Japan are all scheduled this week, keeping global liquidity conditions firmly in focus.
Any signal that central banks remain wary of easing too quickly could further dampen appetite for risk assets, including cryptocurrencies.
“Bitcoin prices tend to thrive when liquidity is expanding globally,” said a London based macro analyst. “If central banks sound more cautious than expected, that could cap upside in crypto markets in the short term.”
This environment has reinforced narrow trading ranges and low momentum, underscoring the broader defensive positioning across financial markets.
Bearish Forecasts Resurface as Bitcoin Prices Lag Traditional Assets
Confidence has also been shaken by renewed bearish commentary from prominent analysts. Mike McGlone, senior commodity strategist at Bloomberg Intelligence, recently warned that Bitcoin could face a sharp downturn over the next year.
“Bitcoin’s rally above $100,000 may have sparked a cycle back toward $10,000,” McGlone said, arguing that a “post-inflation deflation” phase could mirror previous market crashes. He added that highly speculative assets are often the first to suffer when liquidity tightens.
While such views remain divisive, they have contributed to a more cautious tone as Bitcoin prices sit well below recent record highs. By contrast, traditional assets have shown stronger performance, with the S&P 500 posting solid gains over the year.
Market data further reflect fragile positioning. According to Coinglass, liquidations of long Bitcoin positions have outpaced shorts in recent sessions, suggesting bullish traders were caught off guard by continued consolidation.
Meanwhile, ETF flow data from DefiLlama show modest inflows returning after heavy outflows earlier, indicating selective institutional interest rather than broad conviction.
Macro Outlook Keeps Bitcoin Prices Sensitive to Rate Expectations
Attention now turns to how policymakers respond to upcoming data. The latest meeting of the Federal Open Market Committee delivered a rate cut alongside unusually candid discussion about uncertainties in the labour market.
Also read: Bitcoin Prices in Focus as Bank of Japan Prepares Policy Tightening
Chair Jerome Powell acknowledged that job growth figures may have overstated underlying strength, raising questions about how long the Fed can continue easing.
“This week’s data will be a reality check,” said Ed Yardeni, president of Yardeni Research. “Markets need confirmation that the economy can sustain lower rates without reigniting inflation.”
Until clearer signals emerge, analysts expect Bitcoin prices to remain range bound, tracking shifts in macro sentiment rather than crypto specific developments.
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