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Bitcoin prices rose on Monday, reclaiming the $64,000 level, buoyed by improved risk appetite and the return of investors to the market after a quiet weekend. This comes amid widespread anticipation of US inflation data, which could determine the direction of risk assets in the coming period. The world’s largest cryptocurrency climbed to around $64,500, gaining approximately 0.9%, continuing its recovery after the pressure it faced at the end of last week.
Bitcoin defends the $60,000 level
The recent rebound came after Bitcoin successfully held its key support zone near $60,000, an area that saw significant buying interest during recent declines. Traders believe that continued price stability above this level strengthens the prospects for short-term market stabilization, particularly after the sell-off triggered by rising US yields and the Federal Reserve’s tightening policies subsided.
The gains extended to the rest of the cryptocurrency market, with Ethereum rising by about 0.5% to trade near $1,734, while Solana climbed 1.5% to $73. Although the moves remain limited, investors view them as a positive sign after the sharp market volatility of the past week.
US-Iranian negotiations did not move the market.
Over the weekend, attention turned to talks in Switzerland between US and Iranian officials, including US Vice President J.D. Vance, aimed at reaching a lasting ceasefire agreement. The meetings yielded some progress, including an agreement to continue negotiations for up to 60 days, as well as discussions on mechanisms to reduce regional tensions.
However, markets were awaiting clearer results, which limited the reaction of risky assets, including cryptocurrencies. After a wave of optimism that supported Bitcoin at the beginning of last week, the currency retreated as risk appetite waned, before entering a period of sideways movement over the weekend.
Inflation data is at the forefront of attention.
Investors are now focused on the core personal consumption expenditures (PCE) price index data, due on Thursday, which is the Federal Reserve’s preferred gauge of inflation. This data follows the Fed’s most recent meeting, which adopted a more hawkish tone on inflation, with some Fed members raising expectations of a possible interest rate hike in the near future.
Tighter monetary policy usually means reduced liquidity and higher funding costs, which puts pressure on high-risk assets such as cryptocurrencies and technology stocks.
The next resistance is near $68,000. Analysts believe that Bitcoin’s ability to maintain the $60,000 level represents a positive signal for buyers, but the path to higher levels is still linked to US economic data.
If inflation data comes in higher than expected, the likelihood of an interest rate cut may decrease or expectations of monetary tightening may increase, which could limit the rise of cryptocurrencies.
However, if the data shows a slowdown in inflationary pressures, Bitcoin could get a fresh boost that would push it to test the next resistance zone near $68,000.
The market is awaiting the next catalyst.
After weeks of volatility stemming from monetary policy and geopolitical tensions, the cryptocurrency market appears to have entered a holding pattern, with investors awaiting the next catalyst to determine the new price direction. Currently, Bitcoin has managed to recover some of its losses and defend key support levels, but continued upward movement will depend heavily on the trajectory of US inflation and interest rate expectations in the second half of the year.
