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Settles At $69,000 As Rate Concerns Grow Before Fed, CPI From Investing.com
Investing.com– Bitcoin price stabilized on Monday following a sharp weekend decline that saw the cryptocurrency pull back from recent highs, focusing squarely on key U.S. interest rate signals.
The world’s largest cryptocurrency reached $72,000 last week, coming within striking distance of the record highs reached in March. But then it saw a heavy dose of profit-taking and weakness starting Friday after the dollar rebounded.
rose 0.3% over the past 24 hours to $69,534.4 as of 02:04 ET (0604 GMT).
Bitcoin price stabilizes with Fed meeting, CPI in focus
Bitcoin’s decline over the weekend came on the heels of a warmer-than-expected reading, which saw traders largely reconsider recent bets that the Federal Reserve will begin cutting rates in September.
This idea has strengthened the , which in turn has weighed on broader cryptocurrency prices.
The payroll reading also brought the Fed’s upcoming meeting into focus, with the central bank widely expected to finish a two-day meeting on Wednesday.
But the Fed’s rate outlook will be closely monitored.
Before the Fed’s rate decision, inflation data will also be released on Wednesday. The reading is expected to show inflation remaining well above the Fed’s 2% annual target, giving the central bank little confidence to start cutting rates.
High rates over a period of time do not bode well for Bitcoin and cryptocurrencies in general, as the sector typically benefits from increased liquidity and loose lending conditions.
Cryptocurrency Price Today: Altcoins Fuel Losses
Broader cryptocurrency markets also suffered steep losses over the weekend as fears of high rates weighed on the sector. They were also hit by profit taking after some gains in May.
The world’s No. 2 token stabilized at $3,680.01 on Monday, after losing nearly 4% on Friday.
and increased between 0.3% and 1.4%, while among meme coins, SHIB and DOGE decreased by 0.1% and 0.8%, respectively.