Bitcoin exhibited marginal upward movement on Monday, recuperating slightly from the weekend’s dip, yet it lingered within a restrained trading range as concerns over U.S. interest rates persisted.
The leading cryptocurrency maintained stability over the past 24 hours, hovering around $67,085.1 by 09:13 ET (13:13 GMT). Its price trajectory remained confined within the $60,000 to $70,000 range established since mid-March, lacking significant impetus for an imminent breakout.
Amidst this backdrop, the appetite for Bitcoin was overshadowed by a notable surge in metal markets, driven by a blend of safe-haven demand and prolonged positioning, resulting in a record high for gold on Monday.
The focus this week pivoted towards forthcoming cues from the Federal Reserve, poised to influence interest rate expectations. Scheduled for release on Wednesday, the minutes of the Fed’s late-April meeting, alongside a lineup of speeches by key members, particularly those of the rate-setting committee, are anticipated to guide market sentiment.
Attention remains attuned to indications regarding interest rates, particularly following subdued inflation readings for April, which inclined market sentiment towards a potential rate adjustment in September. However, cautionary remarks from Fed officials underscored the necessity for further evidence of easing inflation.
Furthermore, the stability of the dollar, rebounding from previous week losses, served as a limiting factor for significant upside in Bitcoin. Geopolitical tensions in the Middle East following the tragic demise of Iran’s President and foreign minister in a helicopter crash also contributed to subdued risk appetite, prompting a predisposition towards safe-haven assets such as gold and the dollar.
In the realm of altcoins, most major counterparts mirrored Bitcoin’s subdued performance, registering either flat or marginal movements. Ethereum, the second-largest cryptocurrency, saw a modest 0.4% increase to $3,090.91, while XRP experienced a slight decline of 0.3%. Solana, however, notably rose by 5.1%.
Meanwhile, the broader altcoin market faced challenges in garnering momentum in recent months, as investor capital predominantly gravitated towards Bitcoin. Regulatory uncertainties surrounding Ethereum, particularly in light of potential actions by the Securities and Exchange Commission, further dampened enthusiasm for altcoins.
On the forefront of Bitcoin’s ecosystem, a notable decline in the creation of new Bitcoin wallets to levels unseen since 2018 signals dwindling interest and activity. Data from The Block reveals a stark decrease in daily wallet additions, contrasting sharply with figures from six months prior.
Parallelly, key on-chain metrics such as miner revenue and transaction fees have hit record lows, reflecting a subdued level of activity within the Bitcoin network. Despite these downturns, burgeoning interest from venture capital firms in novel protocols within the Bitcoin network hints at the potential for future resurgence.
