Bitcoin Sticks to the $118,000 Zone While Traders Hang Tight
What’s the Current Price Scene?
Bitcoin’s been glued to a sideways corridor around $118,000, refusing to budge past the $120,000 ceiling even after a shaky sprint that day. Market action has been noticeably muted, as nobody’s in a hurry to drive the price up.
Futures Landscape: A Quiet Shift
- Open interest in Bitcoin futures slipped by $3 billion since last Saturday, with no major liquidations on either side.
- Yesterday’s perpetual Bitcoin futures hit a monthly low in trading volume—traders are keeping their hands in the pockets for now.
Why Everyone’s Waiting for Economic Data
Left on the sidelines, the market is drying up into a “wait‑and‑see” mood. That’s because this week is packed with key U.S. indicators:
- Non‑farm payrolls report
- Fed‑preferred inflation gauge
- Gross Domestic Product (GDP) figures
- Consumer Sentiment readings
All of these drop simultaneously with the Federal Reserve’s interest‑rate decision. Investors are tuning in not just for the numbers but for Chair Jerome Powell’s remarks to gauge how policy makers see inflation risks, especially with the higher‑tariff environment still shaking things up.
Trade War Tweaks: EU Deal, But the Rest is Still Shaky
Remember the EU trade pact that sent cryptos fanning themselves around the weekend? Well, that excitement fizzed out as the week progressed. Although the EU agreement lifted spirits, other trade talks—China, Canada, Mexico, Brazil—remain unsolved. Those talks are expected to be tougher, potentially keeping markets on edge until things clear up.
Equity Market Signals: Highs but with a Hiccup
While the U.S. equity market continues its record‑topping run, scary signs are creeping in:
- More S&P 500 stocks are now trading above their 50‑day moving average—levels seen before the post‑election rally.
- Stretched valuations are raising concerns.
- The equity risk premium (the gap between expected stock returns and 10‑year Treasury yields) is almost zero—historically a bearish warning.
When valuations are high and risk compensation is low, market resilience drops. A dip in stocks could trigger a sharper correction in high‑risk digital assets, because crypto doesn’t move in a vacuum.
Rounded Summary
Bitcoin’s price is holding steady around $118,000 while caution spreads across futures and broader markets. The upcoming U.S. economic data, coupled with trade negotiation uncertainty, keeps traders on the edge. Despite record highs, the equity market’s fragile valuations suggest we could see a tighter, more reactive environment next week.
Stay in the Loop
Want real‑time updates? Snap up a subscription and get the latest insights straight to your device.
