Bitcoin price today: $91,800
Bitcoin’s price dipped below the $92,000 mark on Monday, continuing its downward trend after a nearly 4% decline last week. Data from CryptoQuant suggests that the cryptocurrency is showing signs of overheating in exchanges, raising concerns of further corrections ahead.
According to CryptoQuant’s Estimated Leverage Ratio (ELR), Bitcoin futures on exchanges like Gate.io, Bybit, Deribit, and HTX Global are reaching elevated levels. This metric, which divides open interest in futures contracts by exchange reserves, indicates increased leverage in the market. A high ELR often signals heightened risk of correction, urging traders to proceed cautiously.
Adding to the uncertainty, a report from QCP Capital noted that the U.S. economy is heating up, with recent macroeconomic data posing challenges for the broader crypto market. Friday’s Non-Farm Employment Change report showed 256,000 new jobs, significantly exceeding the forecasted 160,000. This robust economic activity has dampened expectations of interest rate cuts by the Federal Reserve, suggesting that rates may remain higher for an extended period.
Additionally, discussions around potential reimplementation of Trump-era tariffs have sparked inflation concerns, further complicating the macroeconomic outlook.
Despite these headwinds, Bitcoin has managed to hold above the $91,000 support level for now. “Implied volatility remains modest, with only a slight bearish tilt in options markets,” noted QCP’s analysts.
Total Bitcoin spot ETF Net Inflow chart. Source: Coinglass
The week ahead could be pivotal for the crypto market, with key economic indicators such as the Producer Price Index (PPI) on Tuesday, the Consumer Price Index (CPI) on Wednesday, and Unemployment Claims on Thursday. These reports could intensify market volatility and test Bitcoin’s role as a potential hedge against inflation.
As traders brace for these developments, the crypto market faces a challenging path, with both macroeconomic pressures and internal market dynamics contributing to uncertainty.