Investing.com– Bitcoin rose on Tuesday, tracking broader gains in risk-on markets amid growing concerns that the Federal Reserve will begin cutting interest rates in September.

By 01:29 ET (05:29 GMT), the rate was up 4.5% at $61,176.1.

Selling pressure stemming from concerns about token distribution by shuttered cryptocurrency exchange Mt. Gox also appeared to have eased, with data on Monday showing cryptocurrency investment products saw some positive capital flows over the past week.

However, despite recent gains, Bitcoin still remained close to the price range it had maintained for most of the year, and the token struggled to reach recent highs due to the decline in interest in cryptocurrencies.

Bitcoin Lifted on Rate Cut Bets, Powell in Focus

Bitcoin and other cryptocurrency markets rose amid a broader risk-on trend in global markets, sending Wall Street indexes into piercing gains on Monday.

Risk sentiment improved on growing confidence that the Fed will cut interest rates in September, with investors expecting a 25 basis point cut.

In that context, this week’s focus is on the speech he gave at the Jackson Hole Symposium on Friday. While the Fed chairman is unlikely to make any clear plans to cut interest rates, he is expected to offer more encouraging comments, especially as recent data has shown some cooling in US inflation.

Lower interest rates bode well for high-risk speculative assets like cryptocurrencies.

The appreciation of the yen carries some risk

However, the piercing rise in cryptocurrency values ​​this week carries some risks for the cryptocurrency market, especially after a similar trend decimated cryptocurrency prices in early August.

Relatively lower interest rates in Japan make the yen a popular medium for speculative trading, and cryptocurrencies are a prime destination for these trades. However, this carry trade was largely resolved by the yen’s piercing rise in early August, following hawkish signals from the Bank of Japan.

While the yen has been weakening over the past week, it rose sharply again on Monday, which could pose a headwind for risk-on markets.

Cryptocurrency Price Today: Altcoins Rising in Tandem with Bitcoin

Cryptocurrency prices rose on Tuesday, with the world’s No. 2 token rising 2.2% to $2,681.48.

added 3.7%, rising even as data showed investors sold off investment products heavily last week. Media reports said Mango Markers, which was once the largest decentralized exchange on the Solana blockchain, was poised to settle with the Securities and Exchange Commission over several securities law violations.

Other altcoins also rose, with their value increasing by 3-7%.

Among meme tokens, the augment was 4.7%.