Investing.com – Bitcoin’s price stabilized on Monday after a edged decline over the weekend that saw the cryptocurrency pull back from recent highs, mainly focusing on several key U.S. interest rate signals.

The world’s largest cryptocurrency hit $72,000 last week, just shy of March’s record highs. However, since Friday, the dollar’s rebound has been followed by a vast dose of profit-taking and weakening.

rose 0.3% in the last 24 hours to $69,534.4 by 02:04 ET (06:04 GMT).

Bitcoin price remains steady with Fed meeting, CPI is in focus

Bitcoin’s weekend decline followed a hotter-than-expected reading that forced traders to rethink recent assumptions that the Federal Reserve would begin cutting interest rates in September.

This concept strengthened the rate, which in turn influenced broader cryptocurrency prices.

The payroll reading also focused attention on the Fed’s upcoming meeting, with the central bank widely expected to end its two-day meeting on Wednesday.

However, the Fed’s interest rate outlook will be closely watched.

Before the Fed decides on interest rates on Wednesday, we will also know inflation data. The reading is expected to show inflation remaining well above the Fed’s annual target of 2%, giving the central bank little confidence in starting to cut interest rates.

Higher and longer interest rates bode ill for Bitcoin and broader cryptocurrencies, given that the sector typically benefits from increased liquidity and loose credit conditions.

Cryptocurrency price today: Altcoin losses

Broader cryptocurrency markets also posted significant losses over the weekend as high-stakes fears weighed on the sector. They were also hit by profit-taking after some gains in May.

The world’s No. 2 token held steady at $3,680.01 on Monday, after losing almost 4% on Friday.

and rose from 0.3% to 1.4%, while among meme coins SHIB and DOGE fell by 0.1% and 0.8%, respectively.