Bitcoin rose on Monday, surpassing the $65,000 level after quiet trading over the weekend. However, ongoing geopolitical tensions and concerns that interest rates could remain elevated limited gains across the cryptocurrency market.
The world’s largest cryptocurrency climbed 1.5% to $65,358, continuing to trade within the narrow range that has prevailed for much of the year as investor caution persists. Bitcoin is also still trading nearly 50% below its all time high recorded in October, while remaining down since the beginning of the year.
Geopolitical developments in the Middle East have increased uncertainty across global markets, weighing on investor appetite for riskier assets. This has coincided with rising oil prices and renewed concerns over inflationary pressures that could prompt the Federal Reserve to keep interest rates elevated for longer.
Markets expect the Federal Reserve to keep interest rates unchanged at its upcoming meeting. However, investors lack fresh signals on the future path of monetary policy due to the media blackout period ahead of the meeting.
High interest rates remain a source of pressure for non yielding assets such as Bitcoin and cryptocurrencies, reducing their appeal compared with fixed income assets that offer returns.
In another development, Michael Saylor, chairman of Strategy, warned about the proposed Bitcoin network upgrade known as BIP 110, which aims to reduce the storage of non financial data on the blockchain and place greater emphasis on Bitcoin’s monetary use.
Saylor believes the upgrade does not address fundamental technical issues, while its supporters argue that it would help reduce unnecessary data on the network and improve its operational efficiency.
Elsewhere in the cryptocurrency market, Ethereum rose 2.2%, while XRP, BNB, Solana, and Cardano also recorded gains. Meme coins, including Dogecoin and TRUMP, posted more limited increases.
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