Bitcoin held its ground above $111,000 on Monday, maintaining its steady performance from the previous week. Traders are keeping a close watch on macroeconomic signals for insights into the future of the cryptocurrency market. While Bitcoin remains stable, other digital assets are showing varied performances, with Dogecoin (DOGE) making the most significant gains.
Dogecoin Surges Amidst Market Stability
In a surprising turn, Dogecoin outperformed its peers with a remarkable 7% increase, reaching 23 cents. This surge comes as major cryptocurrencies like Ether (ETH) and XRP saw modest gains, trading around $4,293 and $2.90 respectively. Solana’s SOL also experienced a slight uptick, rising 2.6% to $208. Despite these gains, overall market capitalization across major cryptocurrencies only saw modest growth, with trading volumes remaining lighter than August’s peaks.
Eyes on U.S. Economic Data
Traders are eagerly awaiting U.S. economic data, particularly the upcoming producer and consumer inflation reports, which are expected later this week. These reports could serve as potential catalysts for the digital assets market. “Cryptocurrencies have been trading at a subdued level as the Fed is conflicted over cutting rates in the midst of inflation that has stubbornly refused to go away,” noted Jeff Mei, COO at BTSE. A higher-than-expected inflation report might lead to a decline in Bitcoin and Ethereum prices, while lower numbers could potentially spark a rally.
The importance of macroeconomic data has grown in recent months, especially as spot bitcoin ETF inflows have cooled. With daily inflows now below $100 million compared to the summer’s surge, the market is increasingly reliant on macro catalysts to drive movement.
A New Player in Bitcoin Adoption
Adding a new layer to the crypto landscape, Johannesburg-based Altvest Capital announced its plans to raise $210 million to purchase Bitcoin. The firm will rebrand as Africa Bitcoin Corp., becoming the first listed African company to incorporate Bitcoin as a core treasury asset. According to CEO Warren Wheatley, this strategy enables pension funds and unit trusts that cannot directly hold Bitcoin to gain regulated exposure through equity.
Though Altvest’s market cap is relatively modest at around $3 million, its strategy is reminiscent of those employed by Japan’s Metaplanet and U.S. firm MicroStrategy. These companies use equity issuance to fund their long-term Bitcoin reserves, a tactic that has proved successful as Bitcoin nearly doubled in value over the past year. This approach appeals to smaller firms aiming to tap into equity investors to accumulate cryptocurrency.
Japanese Market Adds Uncertainty
Meanwhile, Japan’s financial landscape is adding to the macroeconomic uncertainty. The resignation of Prime Minister Shigeru Ishiba has led to a selloff in long-dated government bonds, with 30-year yields reaching 3.285% and the yield curve steepening to levels unseen in other major markets. This shift could impact the yen, which often influences Bitcoin and other crypto prices due to its role as a safe macro hedge.
Periods of relative stability in the crypto market have historically been followed by significant directional moves. Traders are divided on whether Bitcoin will maintain its $111,000 level as a floor heading into September, traditionally a weaker month for the market.
The Week Ahead: U.S. Inflation Data Holds the Key
As the market stands in a state of limbo, the split screen between supportive news and macroeconomic headwinds continues to influence trading decisions. On one hand, Bitcoin benefits from treasury adoption in Africa and steady ETF flows in the U.S. On the other, uncertainties stemming from Japan and U.S. economic data keep volatility close at hand.
The upcoming U.S. inflation data is expected to play a crucial role in determining which narrative will drive the next phase of the market. As traders brace for potential shifts, all eyes will be on the midweek reports to see whether they will provide the necessary push to break Bitcoin’s current range or reinforce its stability above the $111,000 mark.
In this ever-evolving landscape, the cryptocurrency market remains a dynamic space where macroeconomic factors and corporate adoption stories intertwine, shaping the future of digital assets. As always, traders and investors should stay informed and prepared for whatever twists and turns the market may present.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
