Lack of Economic Data Leaves Bitcoin and Crypto Markets in Limbo

The recent bounce in Bitcoin's price has stalled due to the absence of new US economic data, leaving both cryptocurrency and foreign exchange traders uncertain. The CoinDesk 20 Index has stabilized above 3,800 points, indicating a 4% increase over the past 24 hours. The ongoing government shutdown has resulted in a lack of key macroeconomic indicators, which has led to a temporary reprieve for the US dollar. Analysts at ING have noted that the lack of evidence of soft jobs has discouraged dollar bears, leading to a more balanced dollar positioning. This could make it challenging for Bitcoin and other dollar-denominated altcoins to make significant gains. Meanwhile, gold prices remain strong, with major institutions like Bank of America and J.P. Morgan predicting further increases to between $4,500 and $5,000 per ounce by 2026. This bullish outlook has also benefited gold-backed tokens, with the supply of tokenized gold on Ethereum more than doubling this year to nearly $2.7 billion. QCP Capital is hopeful that Bitcoin will soon resume its bull run, citing institutional treasuries accumulating positions and robust ETF inflows. However, the firm notes that it remains to be seen whether Bitcoin can maintain its 'digital gold' status in the next phase of the macro cycle. Liquidity dynamics have also become a focus, with a recent report from Finery Markets showing that over-the-counter desks provided greater liquidity compared to centralized exchanges during the latest market crash. In other news, Taiwanese stablecoin payment company OwlTing has received approval for its direct listing on the Nasdaq, reflecting growing institutional acceptance and maturation within the crypto payments ecosystem. Data tracking website Coinglass has noted a concerning trend of massive outflows from centralized exchanges, led by Binance, over the past seven days. If liquidity dries up and bid-ask spreads widen, there could be more volatility on the horizon. As markets await clearer macroeconomic signals, Bitcoin and crypto investors remain cautiously optimistic but aware of ongoing challenges from dollar strength and liquidity trends.