Investing.com — Bitcoin prices edged higher on Monday, rebounding after a weak August on reduced holiday trading.
At 09:30 ET (13:30 GMT), it was up 0.1% at $58,415.0, after falling more than 7% last week and a sharp drop in August as a whole.
Volumes were thin on Monday as the US is on holiday for Labor Day.
Bitcoin attempts to recover after August losses
The world's largest cryptocurrency was suffering a sharp decline in August as a broader risk-off movement in financial markets hit cryptocurrency prices particularly hard.
Bitcoin spent most of August on a downward trend as the world’s largest cryptocurrency was hit by lingering concerns over token distributions and sell-off events, especially from the defunct Mt Gox exchange.
Attention now turns to this week's key economic data, culminating in the closely watched US non-farm payrolls release on Friday.
Concerns about a US recession triggered deep losses in global financial markets in early August, including cryptocurrency markets.
The US Federal Reserve is widely expected to start cutting interest rates later this month, and payrolls data could determine the size of the cut, which will likely impact broader risk sentiment.
Traders are pricing in a virtual 100% chance of a 25 basis point cut in September, according to CME Fedwatch.
September looks very promising for Bitcoin
While Bitcoin has risen slightly at the start of this week, it has shown a consistent pattern of underperformance in September.
Historical data reveals that Bitcoin has seen negative returns in nine of the last 13 Septembers, making it one of the worst months for the cryptocurrency with an average negative return of 5.36%.
Cryptocurrency price today: Fed meeting seen as key
Broader cryptocurrency prices remained stable and also posted losses in August.
The world's No. 2 cryptocurrency gained 1.7% to $2,514.20, after falling more than 20% in August, its worst month since January 2022.
Other altcoins, SOL and ADA, also traded in tight ranges.
Markets were largely on edge ahead of the Federal Reserve's meeting later this month, with Friday's payrolls result likely to influence the central bank's stance on interest rates.
Lower fees bode well for cryptocurrencies as they free up more liquidity for speculative trading.
