Bitcoin’s price showed little movement on Monday, maintaining a steady stance after a weekend rebound, yet remaining within a defined trading range amidst ongoing caution surrounding U.S. interest rates.
The world’s largest cryptocurrency hovered around $67,148.4 as of 01:01 ET (05:01 GMT), barely budging within the $60,000 to $70,000 range established since mid-March, with few immediate catalysts prompting a breakout.
Bitcoin’s appeal was somewhat overshadowed by a remarkable surge in metal markets, as a combination of safe haven demand and bullish positioning propelled gold to a record high on Monday.
Focus this week is on cues from the Federal Reserve, with the minutes of the late-April meeting due on Wednesday and several Fed officials, particularly members of the rate-setting committee, scheduled to speak. Investors are keenly awaiting any hints regarding the trajectory of interest rates, especially after soft inflation readings for April hinted at a potential rate cut in September. However, Fed officials cautioned that more convincing evidence of easing inflation was necessary.
The dollar’s stability, coupled with concerns over potential geopolitical unrest in the Middle East following Iran’s President and foreign minister’s deaths in a helicopter crash, tempered risk appetite and bolstered demand for safe havens like gold and the dollar. Additionally, dwindling capital inflows into crypto investment vehicles, following waning enthusiasm over spot Bitcoin exchange-traded funds launched earlier this year, further subdued sentiment.
In the altcoin market, most major tokens mirrored Bitcoin’s lackluster performance on Monday. Ethereum, the second-largest cryptocurrency, inched up 0.4% to $3,132.04, while XRP dipped 0.8%. Solana saw a modest rise of 1.7%.
However, meme coins experienced a retreat, with DOGE and SHIB declining by 2.9% and 0.7%, respectively.
Altcoins have faced challenges in gaining traction lately, as the bulk of crypto capital flows continued to favor Bitcoin. Additionally, potential regulatory scrutiny from the Securities and Exchange Commission on Ethereum has dampened enthusiasm for altcoins in recent months.