Investing.com — Bitcoin price rose to a one-month high on Monday, extending gains from the previous week as traders cheered an interest rate cut by the Federal Reserve, with a number of other signals expected this week.
Trading volumes were dampened by a market holiday in Japan, while anticipation of more interest rate signals also kept traders on the sidelines.
rose 1.3% to $63,932.1 as of 00:58 ET (04:58 GMT), extending a breakout of the $50,000 to $60,000 range seen for most of the year.
Bitcoin is upbeat on more hints of rate cuts
Bitcoin largely outperformed the broader cryptocurrency markets, although risk appetite remained optimistic ahead of further cues on interest rates and the US economy.
Several Federal Reserve officials are scheduled to speak in the coming days, with a focus on a speech they are scheduled to give on Thursday.
The data – the Federal Reserve's preferred gauge of inflation – is also due on Friday and is likely to influence the central bank's interest rate plans.
The Fed cut rates by 50 basis points last week, marking the start of an easing cycle that analysts say could see rates cut by at least 125 basis points this year.
In addition to the Fed, central banks will also meet in and both are expected to cut rates.
Lower rates bode well for Bitcoin as they free up liquidity for investing in speculative assets like cryptocurrencies.
But Bitcoin's overall gains were still limited, given that the Fed signaled that rates might not fall much in the medium to long term.
Cryptocurrency markets also have to contend with an uncertain regulatory environment, especially ahead of a tight US election race in 2024.
Recent hawkish signals from the Bank of Japan also limited Bitcoin's advance, although the BOJ is expected to face increased resistance towards future interest rate hikes due to a change in leadership in the Japanese government.
Cryptocurrency prices today: altcoins mixed
Broader cryptocurrency markets were mixed, with the world's No. 2 cryptocurrency up 2.9% to $2,657.20.
and fell by 0.9% and 0.5% respectively, while and rose marginally.
Among meme tokens, it rose by 0.3%.
