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Bitcoin Retreats After Fed-Driven Rally
Bitcoin fell on Monday, giving back gains sparked by Federal Reserve Chair Jerome Powell’s dovish comments last week. The world’s largest cryptocurrency was last down 2.1% at $112,550.5 as of 01:27 ET (05:27 GMT), slipping to its lowest levels in more than six weeks.
The token had surged above $117,000 on Friday after Powell signaled the Fed may need to cut rates in September, citing rising risks to the U.S. labor market. The remarks boosted risk assets, including crypto. However, Bitcoin quickly retreated as traders booked profits, with analysts highlighting resistance at recent highs and pointing to a potential consolidation phase.
Japan Signals Supportive Crypto Framework
Japan’s Finance Minister Katsunobu Kato pledged on Monday to create a more supportive framework for digital assets. He noted that cryptocurrencies could play a role in diversified investment portfolios, reflecting a shift in Japan’s regulatory stance toward broader adoption.
Kato’s comments come as Tokyo works on balancing innovation and investor protection, signaling growing recognition of crypto’s importance in investment strategies.
Altcoins Trade Mixed, Ether Near Highs
Most altcoins traded in a narrow range in line with Bitcoin’s subdued moves. The standout remained Ether, which fell 1.7% to $4,715.73 after touching a record high of $4,955 in the prior session.
Other tokens also softened:
- XRP slipped 1.7% to $3.00
- Solana dropped 0.8%
- Cardano declined 0.7%
- Polygon edged 0.2% lower
Meme coins also pulled back, with Dogecoin down 3% and the $TRUMP token off 1.6%.
Market Outlook
Despite the pullback, crypto markets remain underpinned by expectations of Fed policy easing and regulatory tailwinds from Asia. Analysts expect Bitcoin and Ether to stay volatile in the short term, with consolidation likely before the next directional move.
