Bitcoin price today: hits 1-mth high near $64k on rate cut cheer

Bitcoin price today: hits 1-mth high near $64k on rate cut cheer

Trading volumes were held back by a market holiday in Japan, while anticipation of more cues on interest rates also kept traders to the sidelines.

Bitcoin rose 1.3% to $63,932.1 by 00:58 ET (04:58 GMT), extending a breakout from a $50,000 to $60,000 range seen through most of the year. 

Bitcoin mostly outpaced broader crypto markets, although risk appetite remained upbeat before more cues on interest rates and the U.S. economy. 

Several Fed officials are set to speak in the coming days, with particular focus on an address by Chair Jerome Powell on Thursday. 

PCE price index data- the Fed’s preferred inflation gauge- is also due on Friday, and is likely to factor into the central bank’s plans for interest rates. 

The Fed cut rates by 50 basis points last week, and flagged the beginning of an easing cycle- which analysts say could bring rates lower by at least 125 bps this year. 

Beyond the Fed, central bank meetings in Switzerland and Sweden are also on tap, with both central banks expected to cut rates. 

Lower rates bode well for Bitcoin, given that they free up liquidity to be invested in speculative assets such as crypto. 

But overall gains in Bitcoin were still limited, given that the Fed signaled that rates may not fall by much in the medium-to-long term.

Crypto markets also have to contend with an uncertain regulatory environment, especially in the face of a tight 2024 U.S. election race. 

Recent hawkish-leaning signals from the Bank of Japan also limited Bitcoin’s advance, although the BOJ is expected to face increased resistance towards future interest rate hikes from a leadership change in the Japanese government. 

Broader cryptocurrency markets were mixed, with world no.2 crypto Ether rising 2.9% to $2,657.20.

SOL and XRP fell 0.9% and 0.5%, respectively, while ADA and MATIC rose marginally. 

Among meme tokens, DOGE rose 0.3%.

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