Bitcoin (CRYPTO:BTC) is trading near the $90,000 level as traders prepare for a heavy week of US macroeconomic releases.
Market participants are closely watching how upcoming data may influence Federal Reserve rate expectations.
Analysts say bitcoin remains highly sensitive to shifts in liquidity and monetary policy signals.
Attention is also split between US data and developments in Japan’s monetary policy outlook.
Markets are assigning roughly a 98% probability that the Bank of Japan will raise rates on December 19.
Previous Bank of Japan rate hikes have coincided with sharp risk-asset sell-offs, adding to caution.
With liquidity thinning toward year-end, traders expect heightened volatility across crypto markets.
The first major catalyst this week is the US Nonfarm Payrolls report scheduled for Tuesday.
Economists forecast a sharp slowdown in job creation, with around 50,000 new jobs expected.
The unemployment rate is projected to edge higher to 4.5%, signalling a cooling labour market.
Recent private payroll data has already weakened sentiment.
ADP figures showed a surprise contraction in employment, reinforcing fears of slowing growth.
Traders view a strong payrolls print as a risk for bitcoin, potentially reviving hawkish rate expectations.
A stronger-than-expected report could pressure bitcoin toward the $85,000 support area.
Conversely, a weak payrolls figure could fuel dovish bets and renewed upside momentum.
Analysts say a soft outcome may open a path toward a retest of $95,000.
Initial Jobless Claims data on Thursday will offer a more immediate read on labour market stress.
Claims are expected to decline slightly after a recent spike, which unsettled markets.
Any upside surprise in claims could reinforce recessionary concerns.
Traders are also watching inflation data later in the week.
Softer consumer price figures could strengthen expectations for policy easing in 2026.
Firmer inflation would likely trigger a hawkish repricing across risk assets.
With multiple macro triggers converging, sentiment remains fragile.
Analysts warn that bitcoin’s consolidation near $90,000 may precede a sharp breakout or breakdown.
Market direction this week is likely to be driven more by data than technical factors.
At the time of reporting, Bitcoin price was $89,669.08.