Bitcoin price showed little movement on Monday, remaining within a trading range of $60,000 to $70,000 established since mid-March. Despite a rebound over the weekend, the cryptocurrency steadied at $67,148.4 by 01:01 ET (05:01 GMT), with few catalysts in sight for an immediate breakout. The stability can be attributed to persistent caution over the outlook for U.S. interest rates.
The volatile cryptocurrency market saw a mix of sentiments, with Bitcoin’s appetite overshadowed by a stellar rally in metal markets. Gold hit a record high on Monday, driven by safe-haven demand and long positioning. Furthermore, fears of potential geopolitical instability in the Middle East following the tragic incident involving Iran’s President and foreign minister kept risk appetite subdued, leading traders to favor safe havens such as gold and the dollar.
Market focus this week was centered on cues from the Federal Reserve, particularly regarding the outlook for interest rates. The minutes of the Fed’s late-April meeting are set to be released on Wednesday, with several Fed officials scheduled to speak throughout the week. The market is eagerly awaiting any hints or signals regarding the potential direction of interest rates, especially after some soft inflation readings for April.
While Bitcoin remained rangebound, altcoins also experienced mixed performance on Monday. Ethereum, the world’s second-largest token, rose slightly by 0.4% to $3,132.04, while XRP fell by 0.8%. Solana, on the other hand, saw a 1.7% increase in price. Memecoins, including DOGE and SHIB, retreated by 2.9% and 0.7% respectively. Altcoins have been struggling to gain traction in recent months as most capital flows in the crypto market have been biased towards Bitcoin.
In addition to market factors, potential regulatory actions against Ethereum by the Securities and Exchange Commission have also dampened appetite for altcoins. The uncertainty surrounding regulatory scrutiny has added to the existing caution in the cryptocurrency market, with investors keen on observing how these developments will impact the overall market dynamics.
The stability of Bitcoin price and the mixed performance of altcoins reflect the cautious sentiment prevailing in the cryptocurrency market. While external factors like geopolitical tensions and regulatory concerns play a role, the focus remains on cues from the Federal Reserve and the potential impact on interest rates. Traders and investors are advised to exercise caution and closely monitor market developments to make informed decisions in this unpredictable environment.