The recent movement in Bitcoin price saw a slight decline on Monday, erasing some of the gains made over the weekend. The premier cryptocurrency dropped by 0.34% in the past 24 hours, settling at $65,764.8 by 06:16 am ET (11:16 GMT). Despite reaching a high of $66,914 on Sunday, Bitcoin has been struggling to maintain its momentum in the face of market pressure.
The Federal Reserve’s announcement of only one projected rate cut for the remainder of 2024 has had a significant impact on risk-driven assets like cryptocurrency. Higher interest rates pose a challenge for the crypto sector by limiting liquidity and strengthening the USD. As a result, Bitcoin has faced downward pressure since Thursday, following the Fed’s statements on inflation and rate cuts.
Altcoin Performance
In addition to Bitcoin, most major altcoins also experienced slight declines on Monday. Ether, the world’s second-largest token, dropped by 0.37% to $3,496.77, while ADA saw a nearly 1% decrease. On the other hand, XRP recorded a 2.3% increase, and SOL gained 1.4% during the same period. Among meme tokens, DOGE and SHIB experienced declines of 0.9% and 2.3%, respectively.
Looking ahead, the cryptocurrency market will continue to be influenced by external factors such as the decisions made by the Federal Reserve. With the upcoming approval of exchange-traded funds (ETFs) trading ether, the market is likely to experience increased volatility in the coming months. Investors will need to stay informed and adapt to changing market conditions to navigate the evolving landscape of cryptocurrencies.