Bitcoin Holds Steady at $94,800 Amid Trade Talks, Economic Data Awaited

Bitcoin's price remained relatively stable around $95,000 on Monday, as investors closely monitored developments in trade negotiations and awaited key economic data releases scheduled for the week. The largest cryptocurrency by market capitalization saw a modest increase of 0.4% over the past 24 hours, trading at approximately $94,800. Meanwhile, most altcoins experienced slight declines, with Ethereum and Solana dropping by 0.5% and 1% to $1,800 and $149, respectively.

Investors are keenly observing the progress of trade negotiations, particularly the potential for "bespoke" deals with key trading partners, as mentioned by U.S. Treasury Scott Bessent. The administration is reportedly working on these deals, but the next move is anticipated to come from China. The uncertainty surrounding these negotiations has created a cautious atmosphere in the market, with investors looking for signs of progress that could influence Bitcoin's trajectory.

Economic data releases scheduled for Tuesday and Wednesday are expected to provide further insights into the impact of recent tariffs on inflation and the job market. Economists anticipate that job openings may have decreased in March, while inflation, as measured by the PCE Price Index, is projected to show a 0.4% monthly increase. These data points could significantly influence market sentiment, particularly if they indicate that the tariffs are not exacerbating inflation or causing a sharp economic slowdown.

According to analysts at crypto market maker Wintermute, the crypto market could see renewed activity if macroeconomic indicators show that inflation is under control and the economy is not experiencing a significant slowdown. This optimism is fueled by the possibility of tariff de-escalations hinted at by U.S. President Donald Trump. However, the market's reaction will ultimately depend on the actual data released and its interpretation by investors.

Despite Bitcoin's recent decoupling from other risk assets like U.S. stocks, it is likely to move in line with equities in the short term, especially if there are signs of progress in trade negotiations. Greg Magadini, director of derivatives at crypto data provider Amberdata, suggests that while Bitcoin is currently trading as a risk asset, it has the potential to evolve into a hedge against the U.S. dollar, rallying on uncertainty. This shift could position Bitcoin as "digital gold," providing a safe haven for investors in times of economic turmoil.