Bitcoin traded in a narrow range on Monday, hovering near $61,000 as investors held off making large moves ahead of key economic data and a Capitol Hill appearance by former Federal Reserve Governor Kevin Warsh. The world's largest cryptocurrency has been stuck between support at $60,000 and resistance at $62,500 for the past week, reflecting a market in wait-and-see mode.
The U.S. Consumer Price Index (CPI) report due Wednesday is expected to show a modest cooling in inflation, but any upside surprise could reignite fears of tighter monetary policy. Meanwhile, Warsh, who served as a Fed governor from 2006 to 2011, is scheduled to testify before the House Financial Services Committee on Tuesday regarding the Fed’s digital dollar proposal and the broader regulatory framework for digital assets. Traders are closely watching for any hints of a more aggressive stance toward cryptocurrencies.
"The market is essentially pricing in a binary outcome from this week's events," said Mark Tan, an analyst at crypto data firm Kaiko. "If inflation remains sticky and Warsh strikes a hawkish tone, we could see a sharp sell-off. But a dovish inflation print and a measured testimony might be the catalyst for a breakout above $63,000."
Options markets show elevated implied volatility for near-term Bitcoin contracts, suggesting traders anticipate a significant move by the end of the week. Open interest has also clustered around the $60,000 and $65,000 strike prices.
Ether, the second-largest cryptocurrency, traded flat at $3,350, mirroring Bitcoin's cautious tone. Altcoins were mixed, with Solana rising 2% while Cardano slipped 0.5%.