Investing.com– The price of bitcoin rose slightly on Monday after rebounding out of bear market territory over the weekend, although further gains remain uncertain amid growing speculation about interest rate cuts. in United States.
A sharp drop in the dollar, following weaker-than-expected data, was Bitcoin's biggest benefactor over the weekend. This helped the token recover from bear market territory after it sank to around $59,000 last week, about 22% below an all-time high reached in March.
rose 1.7% in the last 24 hours to $64,247.2 at 01:31 ET (05:35 GMT).
Bitcoin Price Benefits from Some Rate Cut Bets
Markets were now seen pricing in a higher likelihood of a 25 basis point cut by the Federal Reserve in September. This scenario bodes well for cryptocurrencies, as they typically thrive in a low-rate, high-liquidity environment.
A cooling labor market gives the Federal Reserve more impetus to cut interest rates. But Friday's reading also comes after five straight months of better-than-expected payroll readings, while inflation, which is a key factor for the Federal Reserve, remains comfortably above the bank's 2% annual target. central.
Short-term gains in Bitcoin were held back by anticipation of more signals on US rates, specifically from a series of Federal Reserve officials due to speak in the coming days.
FOMC members will speak later on Monday and then on Tuesday.
But despite its rally over the weekend, Bitcoin remained within a trading range seen throughout most of March and April. The world's largest cryptocurrency has fluctuated between $60,000 and $70,000 amid waning hype over the cryptocurrency market.
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Capital flows into Bitcoin investment products, specifically exchange-traded funds approved earlier this year, were observed to slow substantially over the past month. Bitcoin ETFs experienced capital outflows over the past three weeks.
Crypto Price Today: Altcoins Track Bitcoin Recovery
Bitcoin's gains spread to other major cryptocurrencies, although a slowdown was also seen on Monday.
The world's No. 2 cryptocurrency rose 2.7% to $3,166.41. it added 1.4%, while it rose 2.8%.
But Bitcoin remained the sole driver of cryptocurrency valuations, with the token accounting for nearly 55% of the overall crypto valuation.
