Bitcoin
falls below US$64,000 after weekend recovery By Investing.com
Investing.com – The price fell slightly on Monday after recovering from bear market territory over the weekend, as investor optimism remained subdued amid increased speculation over rate cuts. US interest rates.
A sharp drop in the dollar following weaker-than-expected nonfarm payrolls data was Bitcoin’s biggest benefactor over the weekend. This helped the token recover from bear market territory after falling to around $59,000 last week, around 22% below the record high reached in March.
Bitcoin fell 0.3% in the last 24 hours to $63,513.8 at 08:52 ET (12:52 GMT).
Bitcoin Price Benefits From Some Rate Cut Bets
Markets were now seen betting on a greater likelihood of a 25 basis point cut by the Federal Reserve in September. Such a scenario bodes well for cryptocurrencies, as they generally thrive in an environment of low fees and high liquidity.
The cooling labor market gives the Fed more impetus to cut interest rates. But Friday’s reading also comes after five consecutive months of stronger-than-expected payrolls readings, while inflation – which is a key factor for the Fed – remains comfortably above the 2% annual target. of the central bank.
Bitcoin’s short-term gains were held back by anticipation of more signals on US rates, specifically from a number of Fed officials speaking in the coming days.
FOMC members are expected to speak later Monday, followed by Tuesday.
But despite its rally over the weekend, Bitcoin remained within the trading range seen throughout most of March and April. The world’s largest cryptocurrency has hovered between $60,000 and $70,000 amid waning enthusiasm about the crypto market.
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Capital flows into Bitcoin investment products, specifically the cash exchange-traded funds approved earlier this year, were seen slowing substantially last month. Bitcoin ETFs have seen capital outflows over the past three weeks.
Crypto Price Today: Altcoins Show Mixed Performance
Other major cryptocurrencies witnessed mixed performance on Monday, reflecting uncertainty in the broader market.
The world’s No. 2 cryptocurrency fell 1.2% to $3,095.04. remained unchanged on the day while rising 3%.
Bitcoin remained the sole driver of cryptocurrency valuations, with the token accounting for nearly 55% of overall cryptocurrency valuation.
Real users account for less than 10% of stablecoin transactions, data shows
In other crypto-related developments, less than 10% of stablecoin transaction volumes are organic or come from real users, Bloomberg News reported, citing new findings from Visa (NYSE:) and data platform Allium Labs.
Of the approximately $2.2 billion in transactions in April, only $149 billion came from “organic payments activity,” according to the report. The analysis excluded transactions from bots and large-scale traders to “isolate those made by real people.”
The stablecoin market supply is currently valued at around $150 billion, with (USDT) and (USDC) dominating the market, holding 75% and 22% shares respectively.
“There is also a lot of noise in this data given that blockchains are general-purpose networks where stablecoins can be used in a variety of use cases with transactions that can be initiated manually by an end user or programmatically through bots,” Visa said in a statement. an announcement. note last month.
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Despite the disparity between total transfer volume and bot-adjusted volume, the report found consistent growth in monthly active stablecoin users, totaling 27.5 million across all chains.