Bitcoin Falls as Crypto Market Sentiment Remains Fragile

Bitcoin (BTC-USD) extended its losses on Monday, dropping 4.3% to $58,520.7 as of 01:52 ET (05:52 GMT), continuing the sell-off from the weekend. The decline reflects ongoing weak sentiment in the cryptocurrency market following a month-long downturn.

Despite a brief recovery in broader financial markets last week, driven by easing fears of a U.S. recession, the momentum failed to carry into the weekend. Bitcoin, which had been trading between $50,000 and $60,000, remains rangebound after dipping to $49,000 earlier.

The upcoming U.S. inflation data, due on Wednesday, is weighing heavily on risk-driven markets like crypto. Investors are awaiting clues on the Federal Reserve’s stance on potential interest rate cuts, contributing to the market’s cautious tone. The dollar’s strength, bolstered by expectations of cooling inflation, also pressured cryptocurrencies.

Altcoins followed Bitcoin’s decline, with Ether falling 4.3% to $2,549.22, and XRP slipping 4.7% to $0.5625 after last week’s rally. Ripple Labs, XRP’s issuer, was ordered to pay a fraction of the penalties sought by the SEC, though the case left unresolved whether crypto tokens qualify as securities.

Other major altcoins, including ADA and SOL, dropped 5.8% and 8.3%, respectively. Memecoins SHIB and DOGE also fell by more than 6% each.

The crypto market’s subdued performance contrasts with modest gains in Asian stock markets, underscoring the speculative nature of digital assets.