Anticipation of the upcoming “halving” event, in which the Bitcoin network's new generation of tokens will be reduced by 50%, has also led to further buying of the cryptocurrency's optimism.
The halving event is expected to occur around April with the creation of block 740,000 and is likely to further limit Bitcoin supply. However, the market is still unclear about the exact timing of the event.
However, the recovery in Bitcoin price is largely limited by the strength of the dollar. The greenback rose to a one-month high on Monday as dovish signals from major global central banks showed investors largely favored the dollar as the main currency. Only high yield, low risk.
Expectations of more signals on U.S. interest rates - from key personal consumption spending data, which is the Federal Reserve's preferred measure of inflation - also keep dollar investors optimistic. . The data will be published this Friday.
A slew of Fed officials are also set to speak this week, giving more signals about the bank's plans to cut interest rates in 2024. Last week's Fed meeting showed the central bank still expected a 75 basis point cut this year.
