#BTC86kJPShock
Bitcoin rose on Monday, recovering from a slight weekly decline as investors held firm to expectations that the U.S. Federal Reserve will deliver an interest-rate cut this week. Gains were limited as market participants remained cautious, with earlier mixed signals from policymakers tempering enthusiasm.
The world’s largest cryptocurrency last traded 2.2% higher at $91,398.6 by 02:08 ET (07:08 GMT).
Fed expected to cut rates this week
Rate-cut bets stayed intact following softer U.S. economic data in recent weeks. Investors see an 87% chance of a 25-basis-point reduction at the Fed meeting ending Dec. 10, encouraged by a cooling inflation backdrop.
Bitcoin began rising sharply at the end of 2024 as expectations for the Fed’s pivot gathered momentum, with looser financial conditions seen as a key catalyst. Lower interest rates typically weaken the dollar and boost the appeal of non-yielding assets such as Bitcoin, which could help sustain gains if economic data continues to soften.
Market attention will now turn to the Fed’s statement and Chair Jerome Powell’s comments later this week.
