Bitcoin Tumbles Below $80k as Markets Await Inflation Catalyst

Bitcoin traded lower on Monday as the Labor Day holiday reduced liquidity in the market. The price dipped nearly 2% below $80,000 after a brief rally over the weekend.

The move comes ahead of Thursday's inflation data release, which is expected to impact market expectations for interest-rate hikes by the Federal Reserve.

According to QCP Capital, declining overall volatility suggests that traders are waiting for clarity on the direction of the market rather than pricing in strong directional views.

Despite the decline, Bitcoin's resilience has drawn attention as it continues to hold its 25% gains from earlier last month within a narrow range since mid-August.