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On Monday, Bitcoin (BTC) remained in a phase of consolidation below $28,000, continuing its recent trend.

Based on CoinCryptoUS data, the most significant cryptocurrency in terms of market capitalization was trading around $27,350, experiencing a 0.4% decline in the previous 24 hours. Bitcoin's value fell below $28,000 on Friday afternoon, marking a two-day decline following a week of trading above $30,000. At a certain point, the price of bitcoin dropped to nearly $27,100.

Sam Callahan, an expert analyst at Swan Bitcoin, a leading financial services firm focused on bitcoin, has suggested that the recent decline in BTC's price could be seen as "“a period of consolidation and a healthy correction after an explosive move upwards past $30,000 over the last several months." Callahan further emphasized that such corrections are actually beneficial for the cryptocurrency market in the long term, as they help to stabilize prices and prevent unsustainable speculative bubbles from forming.

“Market participants seem to be exercising some caution in light of the heightened probability of the Federal Reserve maintaining interest rates higher for longer, as well as several economic metrics signaling weakness in the economy,” Callahan said.

Market participants are closely monitoring the upcoming Federal Open Market Committee (FOMC) meeting scheduled for next week. Currently, the CME FedWatch Tool indicates a 91% likelihood of the U.S. central bank increasing interest rates by 25 basis points (bps). This development is of significant interest to investors who are eager to see how this decision will impact the broader financial markets.

“Nevertheless, bitcoin's value proposition as an asset without counterparty risk has never been more compelling amid the turmoil recently experienced in the banking sector, and the price reflects that,” Callahan added.

On Monday, Ether (ETH), the second-largest cryptocurrency by market capitalization, was trading at approximately $1,833, representing a 0.8% decrease from the previous day's price at the same time.

During the past week, both BTC and ETH have experienced notable declines of 7% and 11%, respectively. This trend can be attributed to various uncertainties in the cryptocurrency industry and macroeconomic landscape, such as a decrease in U.S. dollar liquidity. As of late, the CoinDesk Market Index (CMI), which provides an overview of the overall crypto market performance, has remained relatively stable for the day, but down by 9.3% over the course of the week. These figures serve as a reminder of the high volatility inherent in the cryptocurrency markets.

In a report released on Monday, Kaiko, a leading crypto data firm, revealed that despite the recent price drop, Bitcoin's value relative to gold continued to increase over the past week. As of early April, one BTC was equivalent to 14.7 ounces of gold, compared to just 9 ounces at the beginning of the year. This trend suggests that Bitcoin has been a more lucrative investment than gold in recent months, possibly due to a surge in institutional interest and wider acceptance of cryptocurrencies as a viable asset class.

“A rising ratio means that BTC is outperforming safe-haven gold despite the ongoing macro uncertainty and is a bullish signal,” Kaiko said, adding the ratio, which had previously fallen to its lowest level when the FTX exchange collapsed in November, rebounded this year.

Equities exhibited a mixed performance on Monday afternoon, with the S&P 500 remaining almost unchanged while the tech-focused Nasdaq Composite experienced a 0.3% decline. On the other hand, the Dow Jones Industrial Average (DJIA) increased by 0.1% during the day's trading session. These movements in the stock market demonstrate the ongoing volatility and uncertainty in the global financial markets.

The yields on two-year and 10-year Treasury notes both decreased in the bond markets, reaching 4.14% and 3.51%, respectively.