Investing.com — Bitcoin prices fell slightly on Monday as a weekend rally lost steam, though growing optimism about interest rate cuts kept the cryptocurrency trading near a near one-month high.
Cryptocurrency prices in general also retreated after posting strong gains since Friday, following comments from Federal Reserve Chairman Jerome Powell that the bank was preparing to cut interest rates. The weakness of the dollar, which sank to a 13-month low, also helped cryptocurrency prices.
fell 0.3% to $63,952.7 at 01:59 ET (05:59 GMT).
But the token’s further gains were somewhat hampered by the persistent strength of the yen. A sharp appreciation of the yen earlier this month had rattled risk-driven markets and also unraveled a carry trade that favoured speculative assets such as cryptocurrencies.
Bitcoin boosted by rate cut bets
The world's largest cryptocurrency has risen sharply over the past two days following Powell's comments suggesting an interest rate cut was imminent.
Markets are now positioning for a rate cut in September, but are divided over a 25- or 50-basis-point reduction, according to .
The data, which is the Fed's preferred gauge of inflation, is due Friday and will likely determine the path of any rate cuts.
Lower rates bode well for speculative assets like cryptocurrencies, as they free up more liquidity to invest in the sector.
RFK backs Trump and improves regulatory outlook in favor of cryptocurrencies
Independent presidential candidate Robert F. Kennedy Jr., who has maintained a pro-cryptocurrency platform, suspended his campaign and endorsed Republican candidate Donald Trump, who has also maintained a pro-cryptocurrency stance.
The move sparked gains in cryptocurrency markets amid growing speculation that Trump could pull off a victory against Democratic candidate Kamala Harris, a scenario that presents more cryptocurrency-friendly regulations.
Trump has maintained a largely pro-cryptocurrency stance in his campaign and recently appeared as a keynote speaker at the Bitcoin conference.
Cryptocurrency prices today: Altcoins fall after weekend rally
Among the broader cryptocurrency markets, most altcoins retreated as the weekend rally cooled and markets looked for further signals on U.S. interest rate cuts.
The world’s No. 2 token fell 1% to $2,735.15, while and traded in a flat to lower range.
suffered massive losses, plunging 5.8%, while among meme tokens, it fell 1.7%.
