Bitcoin fell below $80,000 on Monday, dropping nearly 2% as thin liquidity in US markets — closed for the Labor Day holiday — erased the cryptocurrency's weekend gains above the psychological level.
The drop followed Bitcoin's first weekly close above $80,000 since early May, data from TradingView showed.
With US markets shut, thinner order books increased the probability of sharp moves as the market sought liquidity both above and below the spot price. Data from CoinGlass showed that liquidations over the past 24 hours were evenly split between long and short positions, with total cross-crypto liquidations reaching $178 million.
Liquidity profiles thickened later in the session, with concentrations at $80,500 and $78,800 identified as nearby short-term targets.
Trading firm QCP Capital flagged declining overall volatility in a recent market commentary, writing that "the market is positioned for a directional break once the inflation data arrives." QCP noted that near-term volatility compression ahead of expected catalysts reflected traders awaiting clarity rather than pricing in strong directional views.
US inflation data is scheduled for release Thursday and Friday and is likely to influence market expectations for Federal Reserve interest-rate policy.
Bitcoin has traded in a confined range since Aug. 21, yet has retained the majority of its approximately 25% gains posted earlier in the month, drawing attention to what analysts described as price resilience.
Ryan Lee, chief analyst at Bitget, said in comments to Cointelegraph that Bitcoin had absorbed last week's US macro volatility triggered by a surprise uptick in nonfarm payrolls.
"Bitcoin's resilience is notable because stronger employment would normally put upward pressure on yields and the dollar, creating a tougher environment for risk assets," Lee said. "The market's ability to absorb that repricing suggests investors are not treating a potential Fed hike as the only factor driving Bitcoin at current levels."
US spot Bitcoin exchange-traded funds also remain in focus after Thursday recorded $730 million in net inflows — the highest single-day figure for the cohort since January.
