Investing.com– Bitcoin fell slightly on Monday as a weekend rebound lost momentum, although growing optimism about interest rate cuts kept the cryptocurrency trading near a one-month high.

Broader cryptocurrency prices also fell after posting powerful gains since Friday, following comments from Federal Reserve Chairman Jerome Powell that the bank was preparing to cut interest rates. Weakness in the dollar, which fell to a 13-month low, also helped cryptocurrency prices.

fell 0.3% to $63,952.7 by 01:59 ET (05:59 GMT).

However, further gains in the token were tempered somewhat by continued strength in . The yen’s piercing appreciation earlier this month rattled risk-on markets, as well as reversed carry trade favoring speculative assets like cryptocurrencies.

Bitcoin Lifted on Interest Rate Cut Bets

The world’s largest cryptocurrency has surged in value over the past two days following Powell’s comments that suggested an interest rate cut was imminent.

According to , markets are currently bracing for a rate cut in September, but views are divided on a possible 25 or 50 basis point cut.

The data, which is the Federal Reserve’s preferred measure of inflation, is due next Friday and will likely set the path for any interest rate cuts.

Lower interest rates are good for speculative assets like cryptocurrencies as they free up more liquidity for investments in this sector.

RFK Endorses Trump, Prospects for Crypto Regulation Improve

Independent presidential candidate Robert F. Kennedy Jr., who has maintained a pro-crypto platform, suspended his campaign and endorsed Republican candidate Donald Trump, who has also maintained a pro-crypto stance.

The move sent cryptocurrency markets higher amid growing speculation that Trump could emerge victorious over Democratic candidate Kamala Harris, which would mean more warm regulation for cryptocurrencies.

Trump maintained a largely pro-cryptocurrency stance during his election campaign and recently appeared as a keynote speaker at a Bitcoin conference.

Cryptocurrency Price Today: Altcoins Fall After Weekend Rally

In the broader cryptocurrency market, most altcoins fell as the weekend rally stalled and markets looked for fresh clues about US interest rate cuts.

The world’s second largest token fell 1% to $2,735.15, while the , , and traded in a flat to low range.

saw massive losses, falling 5.8%, while meme tokens fell 1.7%.