Bitcoin falls to start the week as investors look ahead to inflation data

Cryptocurrencies have been under immense pressure after the collapse of a so-called stablecoin called terraUSD.

Risk assets, including cryptocurrencies, were even deeper into the red on Monday as investors continued to digest strong jobs data from Friday.

The market cap of the largest coin was $19,178.423. The price of ether was down.

Riyad Carey, a research analyst at Kaiko, said that today there seemed to be some jitters and derisking in the markets. There haven't been many catalysts in recent weeks, so I'd expect that to continue withBitcoin. The move up or down depends on the inflation figure.

The consumer price index will be released on Thursday. The headline inflation is expected to show a monthly increase and an annual gain, according to economists. The Federal Reserve is trying to bring down inflation.

According to James Butterfill, head of research at CoinShares, there is a building narrative that central banks are making policy errors.

Several of our clients have made the point that they don't want to buybitcoin right now, but as soon as the Fed pivots, they will add to their positions. Key data points to watch out for this week will be the inflation data on Wednesday and the minutes of the Federal Reserve.

The correlation with stocks remains positive despite the anxiety hanging over investors.

Kaiko said that for the fourth Sunday in a row, it was within the $19,000 threshold. The data provider said in a research note that the high volatility regime may be coming to an end.

The note said that after spiking 3% to 5%, the hourly returns have since reverted to 2%.