Bitcoin experienced a turbulent session on Monday, initially sliding below the $64,000 mark to an intraday low of $63,993.48 on the Binance USDT market, according to Bitcoin World market monitoring. The decline represented a 2.3% drop over 24 hours, driven by a combination of macroeconomic headwinds and increased selling pressure from short-term holders. Risk appetite was dampened by renewed concerns over interest rates and geopolitical tensions, prompting a broader market shift that also saw major altcoins like Ethereum and Solana post losses. Analysts highlighted the $63,000–$63,500 zone as immediate support, warning that a break below could test the psychological $60,000 level.
However, as the day progressed, Bitcoin staged a recovery, climbing back above $65,000, where it held firm into the late hours. This resilience comes as traders turn their attention to the upcoming US Consumer Price Index (CPI) report scheduled for release later this week. The inflation data is expected to heavily influence the Federal Reserve’s next policy moves, with a higher-than-expected CPI likely to reinforce a hawkish stance and pressure risk assets, while a cooler reading could fuel expectations of rate cuts and boost crypto buying. Market consensus foresees a modest CPI increase, but any surprise could trigger sharp volatility.
Derivatives data indicated a drop in Bitcoin futures open interest and slightly negative funding rates, suggesting that leveraged positions were liquidated and potentially leaving the market oversold. Despite the intraday dip, institutional interest remains robust, with continued inflows into spot ETFs providing an underlying floor. Investors are now bracing for the CPI release as the next major catalyst, aware that short-term price action will likely be dictated by macroeconomic signals rather than crypto-specific developments.