Bitcoin Price Today: Reaches 1-Month High Near $64K on Rate Cut Optimism

Bitcoin’s price reached a one-month high on Monday, continuing its upward trend from the previous week as traders responded positively to an interest rate cut by the Federal Reserve. However, trading volumes were subdued due to a market holiday in Japan, and many traders remained cautious ahead of upcoming economic indicators regarding interest rates.

At 00:58 ET, Bitcoin had increased by 1.3% to $63,932.1, breaking out from a range that fluctuated between $50,000 and $60,000 for most of the year.

In the broader cryptocurrency market, Bitcoin outperformed other digital assets, as overall risk appetite remained positive in anticipation of fresh insights on interest rates and the U.S. economy. Several Federal Reserve officials are scheduled to speak in the coming days, with special attention on an address by Chair Jerome Powell set for Thursday. Additionally, the PCE price index data, which is the Fed’s preferred measure of inflation, will be released on Friday, influencing the central bank’s interest rate strategies.

Following a recent 50 basis point rate cut, the Fed has indicated the start of an easing cycle, with analysts predicting potential reductions of at least 125 basis points within the year. Furthermore, central bank meetings in Switzerland and Sweden are approaching, with expectations that both will also opt to lower rates.

Lower interest rates generally benefit Bitcoin, as they provide more liquidity for investment in speculative assets like cryptocurrencies. Nonetheless, Bitcoin’s gains were tempered by the Fed’s indication that rates may not decrease significantly in the medium to long term. Additionally, the cryptocurrency market faces uncertainties stemming from regulatory environments, particularly with the tight race leading up to the 2024 U.S. election.

Recent hawkish signals from the Bank of Japan have also capped Bitcoin’s advance, although it is anticipated that the BOJ may encounter more pushback against future rate hikes due to recent changes in Japanese government leadership.

In today’s crypto market, the performance of altcoins was mixed. Ether, the second-largest cryptocurrency by market capitalization, climbed 2.9% to $2,657.20. Meanwhile, SOL and XRP experienced slight declines of 0.9% and 0.5%, respectively. Conversely, ADA and MATIC recorded marginal increases. Among meme tokens, DOGE saw a modest rise of 0.3%.