June 3 2024: Bitcoin’s price increased slightly on Monday but remained largely within its established trading range, even amid optimism over potential interest rate cuts by major central banks and a weaker dollar.
Bitcoin rose 1.3% in the past 24 hours to $68,709.5 by 01:39 ET (05:39 GMT). However, the world’s largest cryptocurrency stayed well within the $60,000 to $70,000 range it has maintained since mid-March.
Bukele’s Re-election Brings Little Bitcoin Movement
Bitcoin showed little price movement despite El Salvador President Nayib Bukele’s re-election for a second term over the weekend. Bukele, who adopted Bitcoin as legal tender in 2021, was seen as a prominent figure in the crypto space for his legalization of the cryptocurrency and regular purchases using the country’s treasury.
However, Bukele made minimal mention of Bitcoin during his swearing-in. Additionally, he appeared to have removed all references to Bitcoin and cryptocurrencies from his social media profile on X (formerly Twitter).
During his swearing-in, Bukele focused on promises to address the struggling El Salvadorian economy, which saw increased government debt during his first term. The adoption of Bitcoin had minimal impact on stimulating the economy. His ambitious plans for a “Bitcoin City” also failed to attract significant interest from private investors, and El Salvador returned to traditional debt markets with a $1 billion bond sale earlier this year.
Despite this, El Salvador’s Bitcoin holdings have significantly increased in value following the cryptocurrency’s strong rally through 2023 and early 2024.
Broader Crypto Market Remains Subdued Despite Rate Cut Expectations
The broader cryptocurrency market showed little movement on Monday, with prices taking minimal support from a general rally in risk-driven markets amid heightened expectations for interest rate cuts.
Ether (ETH): The second-largest cryptocurrency rose 0.3% to $3,817.63.
Solana (SOL): Fell 0.8%.
Ripple (XRP): Decreased 0.1%.
Meme Coins: SHIB lost 1.6%, while DOGE rose 0.5%.
Stock markets rallied on Monday in anticipation of interest rate cuts by the European Central Bank and the Bank of Canada later this week. There is also growing expectation for a Federal Reserve rate cut in September following data released on Friday indicating some cooling in inflation. The Federal Reserve is widely expected to keep rates steady at its meeting next week.
