May 20 2024: Bitcoin prices held steady on Monday, remaining flat at $67,148.4 by 01:01 ET (05:01 GMT), following a rebound over the weekend. The cryptocurrency has been rangebound between $60,000 and $70,000 since mid-March, with few immediate catalysts for a breakout.
Market Sentiment and Influences:
Bitcoin’s stability came amidst a strong rally in metal markets, with gold hitting a record high due to safe-haven demand and long positioning.
Investors are focused on upcoming cues from the Federal Reserve, particularly the minutes from its late-April meeting, due on Wednesday. Several Fed officials, especially members of the rate-setting committee, are scheduled to speak this week.
Market sentiment is shaped by expectations of potential interest rate cuts in September, spurred by recent soft inflation data. However, Fed officials have indicated a need for more substantial evidence of easing inflation.
The dollar steadied from last week’s losses, limiting significant upside for Bitcoin. Geopolitical instability concerns, particularly after the reported death of Iran’s President and foreign minister in a helicopter crash, have kept risk appetite subdued and traders leaning towards safe havens like gold and the dollar.
Crypto investment vehicles have seen dwindling capital inflows as the initial excitement over spot Bitcoin exchange-traded funds launched earlier this year has waned.
Altcoin Performance:
Major altcoins exhibited muted movements in line with Bitcoin. Ethereum rose slightly by 0.4% to $3,132.04, while XRP fell 0.8%. Solana bucked the trend, rising 1.7%.
Memecoins retreated, with DOGE and SHIB down 2.9% and 0.7%, respectively.
Altcoins have struggled to gain traction in recent months as most crypto capital flows have favored Bitcoin. Regulatory concerns, especially potential actions by the Securities and Exchange Commission against Ethereum, have also dampened altcoin enthusiasm.
