Bitcoin Erases Early Gains as Stock Market Reverses Course
- Bitcoin retreated from intraday highs above $68,500 as US stocks reversed lower
- The move tracked a broader risk-off mood in financial markets
- Analysts pointed to uncertainty ahead of key economic data later this week
Bitcoin gave up its early gains on Monday as US stocks reversed course, pushing the cryptocurrency back below the $67,000 mark by afternoon trading.
The digital asset had risen as high as $68,500 in the morning session before sliding back, mirroring a broader downturn in equity markets. The S&P 500 and Nasdaq both turned negative after opening higher, dragging risk assets lower.
Market Moves in Sync
The correlation between Bitcoin and US equities remained tight on Monday. Traders noted that the cryptocurrency was tracking the same macro pressures that weighed on tech stocks.
Bitcoin was last trading near $66,800, down about 1.2% from its session peak. The move erased the modest gains it had made over the weekend.
What Drove the Reversal
Market participants pointed to a shift in sentiment after a quiet start to the week. There was no single catalyst, but a combination of profit-taking and positioning ahead of key economic data later this week appeared to weigh on prices.
The US Federal Reserve's preferred inflation gauge, the PCE price index, is due on Thursday. Traders are also watching a busy calendar of corporate earnings.
Analysts said the reversal was not unusual for a Monday session, which often sees volatile price action as traders return from the weekend.
Broader Crypto Market
Other major cryptocurrencies also gave up early gains. Ethereum slipped back below $3,200 after briefly touching $3,280. Altcoins like Solana and Cardano also retreated.
Total crypto market capitalisation fell by roughly $30 billion from its intraday high, according to CoinGecko data. The reversal wiped out gains that had been driven by optimism over potential spot ETF inflows.
What to Watch
Traders will now focus on the PCE data on Thursday for clues on the Fed's next move. A hotter-than-expected reading could push Bitcoin lower, while a softer print might revive the risk-on mood.
For now, Bitcoin remains range-bound between $65,000 and $70,000, a level it has held for most of July. A breakout above or below that range could set the direction for the coming weeks.