Bitcoin fell nearly 2% on Monday, slipping back below the $80,000 mark in thin holiday liquidity, erasing most of the weekend gains. The retreat came as U.S. markets were closed for Labor Day, reducing market depth and increasing short-term volatility. CoinGlass reported $178 million in total liquidations over the past 24 hours, with long and short positions relatively balanced. Liquidity clusters are concentrated around $80,500 and $78,800. QCP Capital noted that volatility has contracted sharply, and traders are waiting for a new catalyst. This week's U.S. inflation data, due Thursday and Friday, could be the key event to set the direction and potentially alter expectations for the Federal Reserve's rate path. Despite the pullback, Bitget chief analyst Ryan Lee highlighted Bitcoin's resilience, saying the fact that it held high ground even after strong U.S. jobs data—which typically boosts bond yields and the dollar—suggests the market does not view potential Fed hikes as the sole driver of price action. Meanwhile, spot Bitcoin ETF inflows remain in the spotlight, with a single-day net inflow of $730 million, the highest since January.
Bitcoin fell nearly 2% on Monday, slipping back below the $80,000 mark in thin holiday liquidity, erasing most of the gains it had made over the weekend. The retreat reversed the first weekly close above $80,000 since May.
Low Liquidity Amplifies Volatility
The decline unfolded on a day when U.S. markets were closed for the Labor Day holiday, reducing market depth and amplifying intraday price swings. CoinGlass data shows that long and short liquidations were relatively balanced over the past 24 hours, totaling approximately $178 million. Liquidity is clustered around the $80,500 and $78,800 levels, which may act as near-term resistance and support, respectively.
Inflation Data as a Key Catalyst
QCP Capital said that market volatility has been contracting recently, and traders are waiting for a new external catalyst. The U.S. inflation data due on Thursday and Friday could be the key factor setting the market direction and potentially altering expectations for the Federal Reserve's interest rate path.
Despite Bitcoin's recent sideways trading, analysts are noting its resilience. Ryan Lee, chief analyst at Bitget, said the fact that Bitcoin has remained elevated even after unexpectedly strong U.S. employment data—which typically pushes up bond yields and the dollar, pressuring risk assets—suggests that the market does not see potential Fed rate hikes as the sole determinant of current price action.
Record Bitcoin ETF Inflows
Spot Bitcoin ETF inflows also remain a focus. A single-day net inflow of approximately $730 million was recorded recently, the highest single-day level since January this year.
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