Investing.com– Bitcoin’s price fell slightly on Monday as a weekend rebound ran out of steam, although growing optimism over interest rate cuts kept the cryptocurrency trading close to a near one-month high.
Broader crypto prices also retreated after logging strong gains since Friday, following comments from Federal Reserve Chair Jerome Powell that the bank was gearing up to cut interest rates. Weakness in the dollar, which sank to a 13-month low, also aided crypto prices.
Bitcoin fell 0.3% to $63,952.7 by 01:59 ET (05:59 GMT).
But further gains in the token were somewhat stymied by persistent strength in the Japanese yen. A sharp appreciation in the yen earlier this month had rattled risk-driven markets and also unwound a carry trade favoring speculative assets such as crypto.
Bitcoin buoyed by rate cut bets
The world’s largest cryptocurrency rose sharply in the past two days following Powell’s comments, which suggested that an interest rate cut was imminent.
Markets are now positioning for a September interest rate cut, but are split over a 25 or 50 basis point reduction, according to CME Fedwatch.
PCE price index data- which is the Fed’s preferred inflation gauge- is due this Friday, and is likely to determine the path of any rate cuts.
Lower rates bode well for speculative assets such as crypto, given that they free up more liquidity for investing in the sector.
RFK backs Trump, pro-crypto regulatory outlook improves
Independent presidential candidate Robert. F. Kennedy Jr, who has maintained a pro-crypto platform, suspended his campaign and threw his weight behind Republican nominee Donald Trump, who has also maintained a pro-crypto stance.
The move sparked gains in crypto markets amid increased speculation that Trump could clinch a victory against Democratic nominee Kamala Harris- a scenario that presents friendlier regulations for crypto.
Trump has maintained a largely pro-crypto stance in his campaigning, and had recently appeared as a keynote speaker at the Bitcoin conference.
Crypto price today: altcoins dip after weekend rally
Among broader crypto markets, most altcoins retreated as a weekend rally cooled and as markets sought more cues on U.S. interest rate cuts.
World no.2 token Ether fell 1% to $2,735.15, while SOL, XRP and ADA moved in a flat-to-low range.
MATIC saw outsized losses, sinking 5.8%, while among meme tokens, DOGE fell 1.7%.
