Bitcoin held steady on Monday, finding its footing after a significant decline over the previous week. Investor appetite for riskier assets was dampened by mounting unease about weakening U.S. economic indicators and the threat of impending trade duties.
The wider cryptocurrency market posted modest gains but was still recovering from a recent flight from risk, while some investors continued to cash in on gains.
By 09:37 ET (13:37 GMT), Bitcoin had edged up 0.1% to $114,310.
Recent acquisitions by major corporate treasuries did little to halt the cryptocurrency’s slide, with Bitcoin remaining down nearly 3% over the past five days.
Economic Headwinds Weigh on Bitcoin
Bitcoin fell alongside traditional equity markets on Friday following a nonfarm payrolls report for July that came in well below forecasts.
The data intensified fears of a decelerating U.S. economy, a concern amplified by a sharp downward revision of job growth figures from the preceding two months.
Shortly after the report, President Donald Trump dismissed the head of the Bureau of Labor Statistics, Erika McEntarfer, which raised questions about the future integrity of U.S. economic data.
While the disappointing jobs report increased speculation about potential interest rate cuts by the Federal Reserve, it also highlighted a swift slowdown in the U.S. economy, given the labor market’s critical role.
Adding to the economic ambiguity, tariffs proposed by Trump against several key trading partners are scheduled to be implemented this week, threatening to create further economic turmoil. Although cryptocurrencies like Bitcoin are not directly affected by trade policy or labor statistics, changes in investor mood influence the value of speculative assets. Over the long term, however, lower interest rates are generally seen as beneficial for Bitcoin.
Corporate Buying Continues as Metaplanet Adds to Holdings
Metaplanet Inc (TYO:3350) announced on Monday the acquisition of an additional 463 Bitcoin at an average price of approximately 17,268,320 yen ($116,975) per coin, elevating its total holdings to 17,595 coins.
The Japanese firm, which transitioned from hospitality to a Bitcoin-focused treasury strategy, also stated on Friday its intention to launch a $3.7 billion equity offering to fund further Bitcoin purchases.
Metaplanet currently ranks as the seventh-largest corporate holder of Bitcoin globally, trailing Trump Media & Technology Group Corp (NASDAQ:DJT) by approximately 200 coins.
Analysts Praise SEC’s “Project Crypto” as Transformative
Bernstein analysts offered high praise for the SEC’s latest crypto initiative, “Project Crypto,” led by Chair Paul Atkins, describing it as “the boldest and the most transformative crypto vision ever laid out by a sitting SEC chair.”
During a speech titled “American Leadership in the Digital Finance Revolution,” Atkins introduced Project Crypto, a comprehensive regulatory reform designed to establish the U.S. as the worldwide center for blockchain finance.
The plan expands upon the Trump administration’s efforts to make the nation a leader in digital asset innovation, with a key focus on modernizing U.S. securities regulations for the blockchain age. The Bernstein team, headed by Gautam Chhugani, views the initiative as a major shift away from inflexible, outdated rules toward a more dynamic and forward-thinking regulatory model.
Atkins placed the initiative in a grand historical context, likening it to the founding of the New York Stock Exchange in 1792, the post-war reforms in clearing systems, and the emergence of electronic trading in the 1990s.
“The future is arriving at full speed — and the world is not waiting. America must do more than just keep pace with the digital asset revolution. We must drive it,” he declared.
Bernstein also highlighted that the SEC’s recent decision to withdraw its legal action against Coinbase (NASDAQ:COIN) indicates a significant shift in the regulatory approach, which could foster greater domestic innovation within the crypto industry.
Altcoins Show Signs of Recovery
Broader cryptocurrency prices trended upward on Monday, as major alternative coins began to reclaim some ground lost in the previous week.
The world’s second-largest cryptocurrency, Ether, climbed 2.7% to $3,590.10, and XRP jumped nearly 5% to $3.01. Both assets had experienced declines ranging from 9% to 13% in the prior week.
Solana saw a 1.4% increase, while Cardano gained 2%.
In the memecoin category, Dogecoin advanced 2%, and $TRUMP was up 1.3%.
(With contributions from Vahid Karaahmetovic.)
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