The price of Bitcoin exhibited minimal movement on Monday, following a weekend rebound, yet maintaining its rangebound trajectory amidst persistent apprehension surrounding U.S. interest rate projections.
As of 01:01 ET (05:01 GMT), the world’s largest cryptocurrency showed marginal fluctuations, stabilizing at $67,148.4. It continued to operate comfortably within the $60,000 to $70,000 trading range established since mid-March, with limited catalysts present for an imminent breakout.
Bitcoin‘s traction was further overshadowed by a remarkable surge in metal markets, where a combination of safe-haven demand and long positioning propelled gold to a record high on Monday.
Investor attention this week remains fixated on forthcoming cues from the Federal Reserve, expected to shape the interest rate landscape. Scheduled releases include the minutes of the Fed’s late-April meeting on Wednesday, along with speeches from several Fed officials, notably members of the rate-setting committee.
Market focus intensifies on any indications regarding interest rates, particularly following softer inflation readings for April, which prompted speculation of a potential rate cut in September. However, Fed officials cautioned that the bank requires further evidence of inflation easing before contemplating such actions.
The stabilization of the dollar, rebounding from losses incurred the previous week, tempered significant upward momentum in Bitcoin. Additionally, concerns over potential geopolitical tensions in the Middle East, triggered by the helicopter crash that claimed the lives of Iran’s President and Foreign Minister, contributed to subdued risk appetite, prompting traders to gravitate towards safe-haven assets like gold and the dollar.
Meanwhile, the cryptocurrency market witnessed dwindling capital inflows into crypto investment vehicles, following the waning enthusiasm surrounding spot Bitcoin exchange-traded funds introduced earlier in the year.
In the realm of altcoins, the majority mirrored Bitcoin’s subdued movements on Monday, reflecting a cautious sentiment prevailing in the market.
Ethereum, the second-largest cryptocurrency, experienced a modest 0.4% increase, reaching $3,132.04, while XRP recorded a marginal decline of 0.8%. Solana, on the other hand, exhibited a 1.7% rise.
Conversely, memecoins observed a retreat, with DOGE and SHIB registering declines of 2.9% and 0.7%, respectively.
Altcoins have encountered challenges in garnering momentum in recent months, as the bulk of crypto capital flows continue to favor Bitcoin. Additionally, concerns regarding potential regulatory actions against Ethereum by the Securities and Exchange Commission have dampened enthusiasm for alternative cryptocurrencies.
