Bitcoin saw little action on Monday, extending recent gains amid growing conviction that the U.S. Federal Reserve will cut interest rates this week.
But broader crypto prices retreated, while gains in Bitcoin were also limited by emerging concerns over the long-term viability of corporate treasuries, which were a major buying force for Bitcoin this year.
Bitcoin slipped 0.4% to $114,860 by 09:47 ET (13:47 GMT). The world’s largest crypto added some 5% last week.
Bitcoin muted as caution persists ahead of Fed meeting
Bitcoin’s recent gains saw the currency recover steadily from steep losses logged through mid-August to early-September.
But the crypto still nursed a sharp tumble from August peaks, amid a wave of profit-taking and concerns over a growing number of corporate treasuries.
Top corporate holder Strategy’s (formerly MicroStrategy (NASDAQ:MSTR)) rejection from being included in the S&P 500 index added to concerns over the viability of corporate treasuries, with JPMorgan analysts warning that a lack of more index inclusion limited the treasury strategy’s long-term outlook.
This trend saw crypto markets largely lag a rally in broader risk-driven assets, especially equities.
Fed rate cut in sight, outlook awaited
Crypto markets were also on edge before the Fed’s decision this week, with markets anticipating at least a 25 basis point reduction.
Fed fund futures pointed to a 99.6% chance the Fed will cut rates by 25 bps, and a 0.4% chance the central bank will leave rates unchanged, CME Fedwatch showed.
Lower rates tend to benefit speculative assets such as crypto by opening up more liquidity in markets.
But traders still remained uncertain over the Fed’s long-term outlook on easing, given that it has repeatedly flagged caution over sticky inflation. Chair Jerome Powell has also remained largely non-committal towards any easing, despite increasing pressure from the White House to cut rates.
Strategy adds $60 million in Bitcoin, holdings top $73 billion
Strategy has expanded its holdings with another 525 BTC purchased between Sept. 8 and Sept. 14. The acquisition cost about $60.2 million, with an average price of $114,562 per coin, according to a filing with the SEC.
The company now owns 638,985 BTC, valued at roughly $73.4 billion. Its total purchase cost stands near $47.2 billion, reflecting an average of $73,913 per bitcoin when including fees and expenses.
Co-founder and executive chairman Michael Saylor said the position represents more than 3% of Bitcoin’s total capped supply of 21 million coins. Based on current prices, Strategy’s bet implies paper gains of around $26 billion.
Crypto price today: altcoins lag after strong week
Broader crypto prices drifted lower on Monday, seeing some cooling after strong gains in the prior week. Most altcoins were also still nursing losses seen through mid-August to early-September.
World no.2 crypto Ether slid 2.2% $4,514.71, while XRP fell around 1% to $3.02.
Solana fell 4%, while Cardano shed 3%.
Among meme tokens, Dogecoin sank 7.3%, while $TRUMP lost 2.6%.
Source :
https://www.investing.com/news/cryptocurrency-news/bitcoin-price-today-edges-up-to-116k-on-rate-cut-bets-altcoins-lag-4237930
