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HomeLatestBitcoin Price Recovers to $64k Amid Speculation Over U.S. Rate Cuts
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Bitcoin Price Recovers to $64k Amid Speculation Over U.S. Rate Cuts

Bitcoin’s price experienced a modest rise on Monday, recovering from bear market territory over the weekend, though further gains remained uncertain amidst increased speculation surrounding potential U.S. interest rate cuts.

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The primary catalyst for Bitcoin’s recovery was a sharp decline in the dollar, triggered by weaker-than-expected nonfarm payrolls data. This drop in the dollar helped Bitcoin bounce back from its recent lows, reaching around $64,247.2, marking a 1.7% increase over the past 24 hours.

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The speculation surrounding U.S. interest rate cuts has been a significant factor driving Bitcoin’s recent performance. With markets increasingly pricing in the likelihood of a 25 basis point cut by the Federal Reserve in September, cryptocurrencies stand to benefit as they typically thrive in a low-rate, high-liquidity environment.

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While a cooling labor market provides impetus for the Fed to consider rate cuts, it’s worth noting that Friday’s nonfarm payrolls data followed five consecutive months of stronger-than-expected readings. Additionally, inflation, a crucial factor for the Fed, remains comfortably above the central bank’s 2% annual target.

Bitcoin’s near-term gains are being tempered by anticipation of further cues on U.S. rates, particularly from a series of Fed officials scheduled to speak in the coming days. Among them are FOMC members Thomas Barkin and John Williams, set to speak later on Monday, followed by Neel Kashkari on Tuesday.

Despite its recent recovery, Bitcoin continues to trade within a range observed throughout March and April, fluctuating between $60,000 and $70,000 amid diminishing hype surrounding the crypto market.

Moreover, capital flows into Bitcoin investment products, including spot exchange-traded funds approved earlier this year, have notably slowed over the past month, with Bitcoin ETFs witnessing capital outflows for the past three weeks.

The recovery in Bitcoin’s price has also spilled over into other major cryptocurrencies, albeit at a slower pace. Ethereum, the world’s second-largest cryptocurrency, rose by 2.7% to $3,166.41, while XRP added 1.4% and Solana rose by 2.8%.

However, Bitcoin continues to dominate the crypto market, accounting for nearly 55% of the overall crypto valuation, indicating its continued influence on the broader cryptocurrency landscape.

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