Bitcoin's Price Recovery

Bitcoin slipped to a 24-hour low of around $57,250 Monday morning but quickly bounced back to over $58,000. According to data from CoinGecko, Bitcoin's price dipped to $57,257.71 before recovering to $58,419.26, remaining flat on the day yet down 8.6% for the week. This volatility comes as investment products experience ongoing outflows and a trend of declining exchange reserves.

Market Anxiety Ahead of Economic Data

Kristian Haralampiev, Structured Products Lead at Nexo, attributes the recent decline in Bitcoin prices to market anxiety surrounding upcoming U.S. non-farm payroll data, which could affect the Federal Reserve's monetary policy. He stated, "With the Federal Open Market Committee (FOMC) meeting looming, investors are bracing for new economic data that could significantly influence the Fed's decisions.”

Liquidation Trends

Recent data from CoinGlass shows that $169.2 million in liquidations occurred across the crypto market in the past 24 hours, with long positions accounting for $125.59 million of that total. Key indicators to watch this week include initial jobless claims and unemployment rate data, both of which are crucial for the Fed's interest rate decisions.

Investment Products Face Challenges

Digital asset investment products witnessed outflows of $305 million last week, signaling a wave of negative sentiment. James Butterfill from CoinShares noted that $319 million left Bitcoin-focused investment products alone. Interestingly, short Bitcoin products have seen a second consecutive week of inflows, totaling $4.4 million.

Exchange Reserves at Multi-Year Low

Despite short-term fluctuations, on-chain data reveals a potentially bullish long-term trend. Cryptocurrency exchanges now hold only 2.39 million BTC, a 25% decline from their 2020 peak of nearly 3.2 million BTC. This suggests a growing trend toward self-custody among investors, which may reduce selling pressure and favor a bull market if demand continues to rise.