Bitcoin, the pioneer cryptocurrency, experienced a slight decline of 0.34% in the past 24 hours, settling at $65,764.8 by 06:16 am ET (11:16 GMT). This move comes after a weekend where the price had briefly surged to $66,914. Despite briefly surpassing the $70,000 mark last week, Bitcoin struggled to maintain its momentum and ultimately experienced a downward trend for the rest of the week.
The recent announcement by the Federal Reserve regarding a projection of only one rate cut for the remainder of 2024 has introduced pressure on risk-driven assets such as cryptocurrencies. The anticipation of higher rates poses a challenge for the crypto market, as it restricts liquidity and boosts the value of the USD. Consequently, Bitcoin has seen a downward trend since Thursday, reflecting the influence of these external factors on its price movement.
In addition to Bitcoin, other major altcoins also experienced fluctuations in their prices on Monday morning. Ether, the second-largest token globally, saw a decrease of 0.37% to $3,496.77. ADA faced a drop of almost 1%, while XRP witnessed a 2.3% increase and SOL registered a gain of 1.4% during the same period. Among meme tokens, DOGE declined by 0.9% and SHIB fell by 2.3%, indicating a varied performance across different segments of the cryptocurrency market.
The cryptocurrency market has also been influenced by regulatory updates, with U.S. Securities and Exchange Commission Chair Gary Gensler mentioning in a recent budget hearing that the final approvals for exchange-traded funds (ETFs) trading Ether are expected to be completed by this summer. This announcement adds to the evolving regulatory landscape for cryptocurrencies, which continues to impact the market sentiment and price movements of digital assets.
Overall, the cryptocurrency market remains dynamic and susceptible to various internal and external factors that contribute to price fluctuations and market volatility. As investors navigate through these uncertainties, staying informed about the latest developments and understanding the broader market trends becomes essential for making informed decisions in the fast-paced world of cryptocurrencies.