Investing.com — Bitcoin rallied on Monday as investors bought the popular sub-$90,000 dip, shaking off concerns that the U.S. Federal Reserve would cut interest rates less this year. Reduced losses.
By 4:57 pm ET (21:57 GMT), the stock was down 0.2% to $94,192.5, rebounding from a session low of $89,664.8.
Bitcoin prices plunged last week, falling in six of the past seven sessions as a potential token sale by the US government hurt sentiment towards the cryptocurrency.
Despite concerns about interest rates in the United States, a buy-in can be found as Bitcoin falls below $90,000.
Bitcoin tumbled back below $90,000 before hitting support after buying on the spurts, despite concerns that interest rate cuts would be few this year, U.S. Treasury yields and the dollar would rise. i got you.
Rising interest rates often lead to a stronger U.S. dollar and less liquidity in financial markets, which can put downward pressure on Bitcoin and other cryptocurrencies.
Additionally, rising U.S. Treasury yields are associated with falling Bitcoin prices, with some analysts suggesting that Bitcoin’s value could fall to around $90,000 if yields continue to be high. are.
Pressure on Bitcoin due to government selloff report
Bitcoin was also under pressure from recent media reports that the Justice Department had received court approval to sell approximately $6.5 billion worth of Bitcoin seized from the Silk Road black market.
The US government has previously liquidated Bitcoin assets acquired through law enforcement actions, and potential future sales could create additional supply to the market and impact prices.
This is also likely to go against the idea of a strategic Bitcoin reserve under Donald Trump’s administration, further weighing on the token.
MicroStrategy buys Bitcoin for 10 consecutive weeks
Michael Saylor’s MicroStrategy has increased its Bitcoin holdings for 10 consecutive weeks.
During the week ending January 12, the company acquired an additional 2,530 BTC for $243 million, increasing its total holdings to 450,000 BTC. The latest purchases were made at an average price of $95,972 per Bitcoin, bringing the company’s overall average purchase price to $62,691.
Cryptocurrency prices today: Altcoins are almost down
Bitcoin’s performance continues to influence other digital assets in the broader cryptocurrency market.
The world’s second-largest cryptocurrency fell 4.5% to $3,119.26.
The world’s third-largest cryptocurrency rose 0.4% to $2.5297.
fell 3.5%, 2.1%, and 3.1%. It was flat among meme tokens.
Ayushmann Ojha contributed to this report.
