Bitcoin’s Price Rebounds After Weak August, Eyes Key Economic Data
Bitcoin managed to edge higher on Monday, recovering from a lackluster August affected by thin holiday trading. At 09:30 ET (13:30 GMT), the price rose 0.1% to $58,415.0 after experiencing a significant drop last week and throughout the month of August. With the U.S. celebrating Labor Day, trading volumes remained light on Monday.
The world’s largest cryptocurrency struggled in August due to a broader risk-off sentiment in financial markets, which particularly impacted crypto prices. Concerns over token distributions and mass sale events, notably from defunct exchange Mt. Gox, contributed to Bitcoin’s decline.
Investors are now turning their attention to key economic data releases this week, with the U.S. nonfarm payrolls report on Friday being highly anticipated. The possibility of a U.S. recession and expectations of interest rate cuts by the Federal Reserve are influencing market sentiment.
Despite its slight recovery at the beginning of this week, historical data shows that Bitcoin tends to underperform in September. In fact, the cryptocurrency has seen negative returns in nine out of the last 13 Septembers, with an average decline of 5.36%.
In the broader cryptocurrency market, prices were stagnant with the world’s second-largest crypto gaining 1.7% to $2,514.20. Altcoins like SOL and ADA also traded within narrow ranges. Traders are awaiting the Federal Reserve meeting later this month, with the payrolls report expected to impact the central bank’s decision on interest rates.
Lower interest rates could benefit cryptocurrencies by freeing up more liquidity for speculative trading. As September unfolds, investors will need to closely monitor economic data releases and central bank decisions to navigate the volatile crypto market effectively.