Bitcoin price took a slight dip on Monday, reversing the minor gains seen over the weekend as the overall crypto market stabilizes. The premier cryptocurrency saw a decline of 0.34% in the past 24 hours, settling at $65,764.8 by 06:16 am ET (11:16 GMT). This followed a spike to $66,914 on Sunday after hovering above the $70,000 mark earlier in the week. However, since Thursday, Bitcoin has been facing downward pressure due to concerns about rising interest rates.
The recent statement by the Federal Reserve, projecting only one rate cut for the remainder of 2024, has impacted risk-driven assets like cryptocurrencies. Higher interest rates typically hinder the crypto sector by restricting liquidity and strengthening the USD. Federal Reserve Chair Jerome Powell mentioned that despite inflation easing from peak levels, the central bank is not yet ready to reduce rates. However, Powell emphasized that rate hikes are not currently on the agenda.
Apart from Bitcoin, most major altcoins experienced a slight decline on Monday. Ether, the second-largest token, dropped by 0.37% to $3,496.77, while ADA witnessed a nearly 1% decrease. On the other hand, XRP rose by 2.3%, and SOL gained 1.4% during Monday trading. Among meme tokens, DOGE saw a 0.9% decrease, and SHIB fell by 2.3%. The overall altcoin market remains mixed amid the ongoing uncertainty.
In a recent budget hearing, U.S. Securities and Exchange Commission Chair Gary Gensler stated that the final approvals for exchange-traded funds (ETFs) trading Ethereum should be completed by this summer. This announcement comes as a positive development for the broader cryptocurrency market, as it signals potential mainstream adoption and regulatory clarity in the near future.
Overall, the cryptocurrency market continues to navigate through various external factors, including regulatory developments, macroeconomic trends, and investor sentiment. While short-term price fluctuations are common, long-term adoption and institutional interest remain key drivers for sustained growth in the digital asset space. Investors should closely monitor market dynamics and regulatory updates to make informed decisions regarding their cryptocurrency holdings.