Bitcoin rose slightly on Monday, extending recent gains amid growing conviction that the U.S. Federal Reserve will cut interest rates this week.
But broader crypto prices retreated, while gains in Bitcoin were also limited by emerging concerns over the long-term viability of corporate treasuries, which were a major buying force for Bitcoin this year.
Bitcoin rose 0.7% to $116,527.3 by 02:01 ET (06:01 GMT). The world’s largest crypto added some 5% last week.
Bitcoin upbeat on rate cut bets, but caution persists Bitcoin’s recent gains saw the currency recover steadily from steep losses logged through mid-August to early-September.
But the crypto still nursed a sharp tumble from August peaks, amid a wave of profit-taking and concerns over a growing number of corporate treasuries.
Top corporate holder Strategy’s (formerly MicroStrategy (NASDAQ:MSTR)) rejection from being included in the S&P 500 index added to concerns over the viability of corporate treasuries, with JPMorgan analysts warning that a lack of more index inclusion limited the treasury strategy’s long-term outlook.
This trend saw crypto markets largely lag a rally in broader risk-driven assets, especially equities.
Fed rate cut in sight, outlook awaited Crypto markets were also on edge before the Fed’s decision this week, with markets anticipating at least a 25 basis point reduction.
Fed fund futures pointed to a 99.6% chance the Fed will cut rates by 25 bps, and a 0.4% chance the central bank will leave rates unchanged, CME Fedwatch showed.
Lower rates tend to benefit speculative assets such as crypto by opening up more liquidity in markets.
But traders still remained uncertain over the Fed’s long-term outlook on easing, given that it has repeatedly flagged caution over sticky inflation. Chair Jerome Powell has also remained largely non-committal towards any easing, despite increasing pressure from the White House to cut rates.
Crypto price today: altcoins lag after strong week Broader crypto prices drifted lower on Monday, seeing some cooling after strong gains in the prior week. Most altcoins were also still nursing losses seen through mid-August to early-September.
World no.2 crypto Ether steadied at $4,669.36, while XRP fell 1.1% to $3.0581.
Solana fell 1.4%, while Cardano shed 2.5%.
Among meme tokens, Dogecoin fell 3.7%, while $TRUMP fell 1.3%.
