Crypto markets slipped into the red to start the week as investors positioned for a series of high-impact U.S. economic releases, including the Federal Reserve’s January meeting minutes and the closely watched core PCE inflation report.
Bitcoin (BTC) traded around $68,200 at the time of writing, down roughly 3% over the past day. The broader market saw deeper losses, with major tokens such as XRP, ether (ETH) and dogecoin (DOGE) under heavier pressure.
The downturn was widespread: approximately 85 of the top 100 cryptocurrencies by market capitalization were lower. Privacy coins including monero (XMR) and zcash (ZEC) posted sharp declines, while smart contract platforms also weakened. The CoinDesk Smart Contract Platform Select Capped Index fell nearly 6%, extending its year-to-date drop to 28%.
The retreat comes despite last week’s softer inflation data in the U.S., which initially boosted hopes for interest-rate cuts. Annual CPI slowed to 2.4% in January from 2.7% in December, strengthening expectations that the Federal Reserve could deliver at least two 25-basis-point reductions this year. The 10-year Treasury yield declined to 4.05%, its lowest level since early December.
Bitcoin responded with a brief rally, climbing from roughly $66,800 late last week to above $70,000 over the weekend. However, the move failed to hold, with prices slipping back below the key psychological threshold.
Vikram Subburaj, CEO of the India-based Giottus exchange, said the market’s inability to sustain gains reflects cautious positioning and continued deleveraging in derivatives markets.
“Risk appetite remains selective amid macro uncertainty,” Subburaj said. “Derivatives markets still appear to be cutting leverage aggressively. Rallies fade quickly, and dip buying is concentrated around clear technical levels.”
Attention now turns to upcoming macro catalysts. Investors will analyze the Fed’s meeting minutes for insight into policymakers’ thinking, while the core personal consumption expenditures (PCE) index — the central bank’s preferred inflation gauge — is expected to guide rate expectations. Traders will focus on both monthly momentum and the year-over-year trend to assess the likely policy path.
Meanwhile, currency markets could also influence crypto sentiment. Mark Nash of Jupiter Asset Management has shifted to a bullish stance on the Japanese yen, forecasting an 8–9% appreciation, particularly versus the Swiss franc.
Given bitcoin’s recent positive correlation with the yen, sustained strength in Japan’s currency could offer support to the leading cryptocurrency, even as broader macro uncertainty keeps digital assets on edge.
