Bitcoin $BTC fell slightly on Monday as the weekend rally ran out of steam, although growing optimism about interest rate cuts kept the cryptocurrency trading near a one-month high.
Broader cryptocurrency prices also retreated after posting strong gains since Friday, after Federal Reserve Chairman Jerome Powell said the bank was preparing to cut interest rates. A weaker dollar, which fell to a 13-month low, also supported cryptocurrency prices.
Bitcoin is down 0.5% to $63,676.3 at 10:10 Riyadh time, while Ethereum $ETH is down 0.76% at the same time.
The bearish sentiment in Bitcoin in recent times has been attributed by some to market turmoil and the growing strength of the Japanese yen, which has risen sharply on the back of monetary tightening by the Bank of Japan, hurting the yen carry trade that favors high-yield, high-risk assets such as cryptocurrencies and stocks.
Bitcoin is supported by bets on lower interest rates.
The world's largest cryptocurrency has risen sharply in the past two days after Powell's comments, which suggested that an interest rate cut was imminent.
Markets are now pricing in a rate cut in September, but are divided on whether to cut rates by 25 or 50 basis points, according to FedWatch.
This week, personal consumption expenditures (PCE) price data is due, the Fed's preferred measure of inflation and will likely set the tone for any interest rate cuts.
Low interest rates bode well for speculative assets like cryptocurrencies, as they provide more liquidity to invest in the sector.
Independent Presidential Candidate Robert Kennedy Endorses Trump, Pro-Crypto Regulatory Outlook Improves
Independent presidential candidate Robert F. Kennedy Jr., who has maintained a pro-cryptocurrency platform, has suspended his campaign and thrown his weight behind Republican nominee Donald Trump, who has also maintained his pro-crypto stance.
The move has sparked gains in cryptocurrency markets amid growing speculation that Trump could win against Democratic candidate Kamala Harris — a scenario that would represent more friendly regulations for cryptocurrencies.
Trump has largely maintained his pro-crypto stance on the campaign trail, and recently appeared as a keynote speaker at a Bitcoin conference.
Cryptocurrency Price Today: Altcoins Retreat After Weekend Surge
Among the broader crypto markets, most altcoins retreated as the weekend rally cooled and markets sought more cues on U.S. interest rate cuts.
The news of the arrest of Telegram founder Peter Droveau in France contributed to the heavy losses suffered by many digital currencies linked to Telegram, most notably the TON currency, which lost more than $2 billion as a result of the sharp decline that exceeded 17% yesterday.