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Bitcoin prices are back in the $26,000-$27,000 range that has dominated for two months.
The time of dreams
Bitcoin
and other cryptocurrencies were little changed on Monday amid a quiet day for global trade, with US markets closed for the June 16 holiday.
However, a macro catalyst lies in the days ahead as cryptos continue to stagnate in a familiar range.
Bitcoin price has fallen less than 1% in the past 24 hours to $26,400, losing ground from a weekend high near $27,000. Last Friday, a rally – after fund manager BlackRock (BLK) requested the creation of a Bitcoin exchange-traded fund – took the largest digital asset back above $26,000. Bitcoin is now back in the $26,000-$27,000 trading range that has dominated for much of the time since the token hit a 10-month high in April above $30,000 – a level that has since proven difficult to recover.
Federal Reserve Chairman Jerome Powell is scheduled to testify before Congress this week, speaking before the House Financial Services Committee and the Senate Banking Committee on Wednesday and Thursday, respectively. Powell’s remarks could be the next major catalyst for cryptos, whose prices have risen and fallen in response to the US monetary policy outlook.
The Fed’s interest rate hike campaign over the past year has been a key force driving digital assets lower from their late-2021 peak, and Bitcoin’s rally of around two-thirds in 2023 came as the central bank’s job was expected to be nearly complete. Last week, the Fed pressed the pause rate button for the first time in this tightening cycle, but signaled that more rate hikes may be ahead.
How hawkish Powell is before Congress – how the Fed chief is telegraphing more rate hikes – will be front and center for investors in the markets this week, crucial for cryptos just like the
Dow Jones Industrial Average
And
S&P500.
Beyond bitcoin,
Ether
– the second largest crypto – fell less than 1% to $1,725. Smaller cryptos, or altcoins, were weaker, with
gimbal
decrease of 3% and
Polygon
2% slip. Memecoins were more mixed, with
Dogecoin
less than 1% and
shiba inus
less than 1%.
Write to Jack Denton at jack.denton@barrons.com