Bitcoin
Stabilizes at $69K as Rate Fears Rise Ahead of Fed, CPI By Investing.com
Investing.com – The price of Bitcoin stabilized on Monday after a sharp drop over the weekend saw the cryptocurrency pull back from recent highs, with a direct focus on more key signals about US interest rates.
The world’s largest cryptocurrency reached US$72,000 last week, coming very close to the record highs reached in March. But then it saw a heavy dose of profit taking and weakness from Friday following the dollar’s recovery.
rose 0.3% in the last 24 hours to $69,534.4 at 02:04 ET (06:04 GMT).
Bitcoin price stabilizes with Fed meeting, CPI in focus
Bitcoin’s weekend decline came on the heels of a warmer-than-expected reading that caused traders to largely rethink recent bets that the Federal Reserve would begin cutting rates in September.
This notion boosted , which in turn weighed on broader cryptocurrency prices.
The payrolls reading also brought an upcoming Fed meeting into focus, with the central bank widely expected to do so at the conclusion of a two-day meeting on Wednesday.
But the Fed’s outlook on rates will be closely watched.
Ahead of the Fed’s rate decision, inflation data will also be released on Wednesday. The reading is expected to show that inflation remains well above the Fed’s 2% annual target, giving the central bank little confidence to start cutting rates.
Higher rates for longer bode poorly for Bitcoin and broader cryptocurrencies, given that the sector generally benefits from increased liquidity and flexible lending conditions.
Crypto Price Today: Nurse Losses Altcoins
Broader crypto markets also suffered sharp 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 rose between 0.3% and 1.4%, while among meme coins, SHIB and DOGE fell 0.1% and 0.8%, respectively.