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Investing.com – The price was little moved in Asian trading on Monday after recovering over the weekend, although further strength for the token now appeared uncertain as strong U.S. jobs data led traders to price in chances of interest rate cuts soon.
As of 00:58 ET (04:58 GMT), the price was flat at $69,406 over the past 24 hours, having recouped much of its weekly losses over the weekend.
However, the token still remained well within the trading range established last month as it struggled for direction after hitting record highs in March.
Crypto price today: US interest rate fears cause little movement
Aside from Bitcoin, other top cryptocurrencies also saw fluctuations as the focus remained clearly on further evidence of US interest rates. Like Bitcoin, the broader crypto market also benefits from a low interest rate and high liquidity environment.
World no. 2 cryptocurrencies rose by 1% while they fell by 0.4%. Both tokens are also the subject of an ongoing government audit.
Hopes for a rate cut in the US are fading, CPI data is expected
It showed that markets largely scaled back their bets that the Federal Reserve would cut interest rates as early as June. Traders are pricing in a near 51% chance of a 25 basis point cut in June.
Expectations of key March inflation data due this Wednesday also kept sentiment subdued and provided little boost to crypto markets. Inflation is expected to have fallen slightly but remains well above the Fed's annual target of 2%.
Longer-term higher interest rates do not bode well for crypto markets, as they typically benefit from loose monetary policy that encourages more speculative trading.
Much of the crypto market's recent strength has been driven primarily by Bitcoin, as the world's largest cryptocurrency saw a flood of capital flows after the Securities and Exchange Commission approved spot exchange-traded funds for U.S. markets in January.
However, the past few weeks have seen a slowdown in these capital flows as the excitement surrounding Bitcoin ETF approval now appears to be waning.
Traders were now awaiting an SEC decision on spot Ethereum ETFs, due in May, as well as ongoing SEC proceedings against and Coinbase Global Inc (NASDAQ:), for further advice on the crypto market.
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