June 10 2024: Bitcoin’s price steadied on Monday following a sharp drop over the weekend, which saw the cryptocurrency retreat from recent highs. The focus is now on upcoming signals regarding U.S. interest rates.
Last week, Bitcoin reached as high as $72,000, nearing the record highs achieved in March. However, it experienced significant profit-taking and a dip in value starting on Friday after the dollar rebounded.
As of 02:04 ET (06:04 GMT), Bitcoin increased by 0.3% over the past 24 hours, trading at $69,534.4.
Bitcoin Steadies with Fed Meeting and CPI Data in Focus
Bitcoin’s decline over the weekend followed a stronger-than-expected nonfarm payrolls report, which led traders to reconsider their expectations that the Federal Reserve would start cutting rates in September. This boosted the dollar, which in turn pressured broader cryptocurrency prices.
The payrolls data has put the upcoming Fed meeting under scrutiny, with the central bank widely expected to keep rates steady at the conclusion of a two-day meeting on Wednesday. However, the Fed’s future rate outlook will be closely monitored.
Before the Fed announces its rate decision, consumer price index (CPI) inflation data is due on Wednesday. This reading is expected to show that inflation remains well above the Fed’s 2% annual target, providing the central bank little confidence to start lowering rates.
Persistently high rates are generally unfavorable for Bitcoin and other cryptocurrencies, as the sector typically benefits from increased liquidity and loose lending conditions.
Altcoins Nurse Losses
The broader cryptocurrency market also suffered steep losses over the weekend due to concerns over high interest rates. The market was also affected by profit-taking after gains in May.
Ether, the world’s second-largest cryptocurrency, steadied at $3,680.01 on Monday after losing nearly 4% on Friday. Other cryptocurrencies such as XRP, SOL, and ADA saw increases between 0.3% and 1.4%, while meme coins SHIB and DOGE fell by 0.1% and 0.8%, respectively.
