Bitcoin exhibited a modest 1.3% increase over the past 24 hours, reaching $68,709.5 by 01:39 ET (05:39 GMT) on Monday. However, the cryptocurrency continued to trade within the established range of $60,000 to $70,000, a pattern persisting since mid-March, despite market optimism surrounding potential interest rate adjustments by major central banks and weakness in the dollar.
Despite the re-election of El Salvador President Nayib Bukele, a prominent figure in the cryptocurrency space for legalizing Bitcoin as tender in 2021, the cryptocurrency market saw minimal impact. Bukele’s absence of significant references to Bitcoin during his swearing-in ceremony, coupled with the removal of mentions of Bitcoin and cryptocurrencies from his social media profile, notably on X (formerly Twitter), contributed to subdued market response.
Additionally, Bukele’s focus on addressing the country’s economic challenges, which had escalated during his first term despite the adoption of Bitcoin, diverted attention from cryptocurrency-related initiatives. The ambitious “Bitcoin City” project failed to attract substantial interest from private investors, despite El Salvador’s return to traditional debt markets earlier this year with a $1 billion bond sale. Nonetheless, El Salvador’s Bitcoin holdings appreciated significantly in value, propelled by the cryptocurrency’s impressive rally throughout 2023 and early 2024.
In the broader cryptocurrency market, movements were subdued on Monday despite a surge in risk-driven markets, as attention shifted towards expectations of interest rate cuts. Ethereum, the second-largest cryptocurrency by market capitalization, experienced a marginal 0.3% increase to $3,817.63, while SOL and XRP witnessed slight declines of 0.8% and 0.1%, respectively. Meme coins, represented by SHIB and DOGE, displayed mixed performances with a 1.6% decline and a 0.5% increase, respectively.
Global stock markets rallied in anticipation of upcoming interest rate decisions by the European Central Bank and the Bank of Canada later in the week. Expectations for a rate cut by the Federal Reserve in September gained traction following Friday’s release of data indicating a moderation in inflation. The central bank is widely anticipated to maintain its current interest rate stance at the upcoming meeting next week.
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