According to U.Today, cryptocurrencies strengthened at the start of Monday, buoyed by equity gains and increased optimism ahead of major central bank decisions. This week, investors are closely watching the release of key economic data and the Federal Reserve’s July meeting, which begins on Tuesday and concludes on Wednesday. The Fed is expected to announce interest rates and provide new monetary policy guidance. While rates are widely anticipated to remain steady, investors are keen on signals regarding potential rate cuts this year. They will be paying close attention to any policy guidance and the post-meeting press conference with Fed Chairman Jerome Powell.

On Friday, the personal consumption expenditures (PCE) price index, the Fed's preferred inflation metric, met expectations. In June, the PCE grew 0.1% from the previous month and 2.5% from a year ago. Traders have been pricing in a strong possibility of the first interest rate decrease occurring in September. Although Fed officials have emphasized the need for more evidence that inflation is steadily returning to 2% before cutting rates, Fed Chair Jerome Powell indicated earlier this month that the central bank might not wait until inflation reaches this target before implementing rate cuts.

Bitcoin reached its highest level since mid-June, hitting $69,868 in early trading today as expectations for U.S. Federal Reserve interest-rate cuts boosted investor sentiment. At the time of writing, BTC was up 2.65% in the last 24 hours to $69,520. Several other cryptocurrencies also posted gains, with Ethereum, Solana, and Dogecoin rising between 2% and 4%. Bitcoin Cash, a spinoff of Bitcoin, gained as much as 15%. The upcoming Fed meeting is likely to lay the groundwork for the commencement of a rate-cutting cycle, which is considered favorable for cryptocurrencies, further lifting market sentiment. Bitcoin remains around $4,400 lower than its all-time high of approximately $74,000 in March. Inflows into specific U.S. exchange-traded funds have contributed to Bitcoin's value increase this year.