Investing.com– Bitcoin rose to a one-month high on Monday, extending gains from the previous week, as investors welcomed a rate cut by the Federal Reserve. There are more signs coming this week.

Trading volume was dampened by a market holiday in Japan, while anticipation of further interest rate signals also kept investors on hold.

rose 1.3% to $63,932.1 by 00:58 ET (04:58 GMT), continuing its breakout from the $50,000-60,000 range seen for most of the year.

Bitcoin bullish on more rate cut hints

Bitcoin generally outperformed broader cryptocurrency markets, although risk appetite remained high ahead of further signals on interest rates and the US economy.

Several Federal Reserve officials are scheduled to give speeches in the coming days, with particular emphasis on an appearance scheduled for Thursday.

The data — the Fed’s preferred inflation gauge — will also be released on Friday and will likely factor into the central bank’s interest rate plans.

The Federal Reserve cut interest rates by 50 basis points last week, signaling the start of an easing cycle that analysts say could result in at least 125 basis points of rate cuts this year.

In addition to the Federal Reserve, there will also be meetings of central banks where interest rate cuts can be expected.

Lower interest rates bode well for bitcoin as they free up liquidity that can be invested in speculative assets like cryptocurrencies.

However, overall gains in bitcoin value were still confined given the fact that the Federal Reserve signaled that interest rates may not fall significantly in the medium to long term.

Cryptocurrency markets also face an uncertain regulatory environment, especially with the 2024 US election race in the spotlight.

Recent signals of a hawkish stance from the Bank of Japan have also capped bitcoin’s gains, although the BOJ is expected to face increased resistance to future interest rate hikes due to a leadership change in the Japanese government.

Cryptocurrency Price Today: Mixed Altcoins

Sentiment in the broader cryptocurrency market was mixed, with the world’s No. 2 cryptocurrency rising 2.9% to $2,657.20.

and fell by 0.9% and 0.5%, respectively, while the and indices increased slightly.

Among meme tokens, the boost was 0.3%.