Bitcoin Rebounds Amid Rate Cut Speculation

Bitcoin saw a marginal rise on Monday, rebounding from bear market territory over the weekend, although uncertainties lingered amidst heightened speculation regarding potential U.S. interest rate cuts.

Benefiting from a significant decline in the dollar following weaker-than-expected nonfarm payrolls data, Bitcoin recovered from recent lows, climbing 1.7% in the past 24 hours to $64,247.2 by 01:31 ET (05:35 GMT).

The rise in Bitcoin prices was partly attributed to increased bets on a 25 basis point cut by the Federal Reserve in September, a scenario favorable to cryptocurrencies, which typically thrive in low-rate environments.

Despite a cooling labor market potentially urging the Fed towards interest rate cuts, Friday’s data followed a series of stronger-than-expected payrolls readings over five consecutive months. Moreover, inflation, a key Fed consideration, remains comfortably above the central bank’s 2% annual target.

Bitcoin’s near-term gains were tempered by the anticipation of further insights into U.S. rates, particularly from upcoming speeches by Fed officials. Thomas Barkin and John Williams are scheduled to speak later on Monday, followed by Neel Kashkari on Tuesday.

However, despite the weekend recovery, Bitcoin remained within a trading range observed through most of March and April, fluctuating between $60,000 and $70,000 amid declining excitement surrounding the crypto market.

Capital inflows into Bitcoin investment products, notably spot exchange-traded funds (ETFs) approved earlier this year, notably slowed over the past month, with Bitcoin ETFs witnessing capital outflows for the past three weeks.

Altcoins Follow Bitcoin’s Recovery Trend

Bitcoin’s gains spilled over into other major cryptocurrencies, albeit at a slower pace on Monday.

Ethereum, the world’s second-largest crypto, rose by 2.7% to $3,166.41. XRP registered a 1.4% increase, while Solana saw a 2.8% rise.

However, Bitcoin remained the primary driver of crypto valuations, accounting for nearly 55% of the overall crypto market valuation.