The price of bitcoin rose to a one-month high on Monday, continuing last week's growth. This happened amid expectations of an interest rate cut by the US Federal Reserve, which encouraged traders. UNN writes about it with reference to Investing.
Details
Bitcoin rose by 1.3% to $63,932, continuing its upward trend. Expectations of lower rates contributed to optimism in the cryptocurrency market. Several Fed officials, including Chairman Jerome Powell, are scheduled to speak this week, and inflation data on Friday could also influence future rate decisions.
Last week, the Fed has already cut rates by 50 basis points and is expected to cut them even further over the course of the year. The central banks of Switzerland and Sweden are also expected to take similar steps. Lower rates may encourage investment in cryptocurrencies, such as bitcoin, due to increased liquidity.
Bitcoin's overall growth has remained limited as the Fed has indicated that rates may not decline much in the medium to long term. In addition, crypto markets face uncertain regulations, especially due to the upcoming US elections in 2024.
Recent comments from the Bank of Japan have also restrained bitcoin's growth, although a rate hike in Japan may be met with resistance due to changes in the government.
Cryptocurrency prices showed mixed results today. Ether rose by 2.9% to $2,657.20, while SOL and XRP fell by 0.9% and 0.5%, respectively. ADA and MATIC rose slightly, and the DOGE memo token added 0.3%.
Recall
Last week, after the US Federal Reserve cut interest rates, the price of bitcoin rose to $61,985, briefly reaching $62,539.
