Blue-chip crypto tokens Bitcoin (BTC) and Ethereum (ETH) traded slightly lower at $63,570 and $2,730, respectively, on Monday. This follows a weekend where both tokens neared $65,000 and $2,900 after U.S. Federal Reserve Chair Jerome Powell hinted at imminent interest rate cuts.Speaking at the Jackson Hole Economic Symposium, Powell stated, “The time has come” to lower the Fed funds target rate, adding that “the upside risks of inflation have diminished.” He also emphasized that the Fed does not expect further weakening in labor market conditions, suggesting a potential rate cut at next month’s policy meeting — the first in over four years.

As of 3:07 PM IST, Bitcoin (BTC) was down 0.34% at $63,650, and Ethereum (ETH) declined 0.74% to $2,730.

“The overall crypto market reacted positively to Powell’s remarks on potential rate cuts, boosting sentiment,” the CoinDCX Research Team noted. “Technically, Bitcoin remains bullish on higher time frames but neutral on lower time frames, with key support around $58,000 and resistance at $65,500.”

Edul Patel, CEO of Mudrex, highlighted the momentum over the weekend: “Bitcoin climbed following Powell’s hint at a potential rate cut in September. This, combined with positive sentiment from Robert F. Kennedy Jr.’s pro-crypto stance, pushed Bitcoin to $64,000. The next resistance is at $65,600, with support around $63,600.”

The global cryptocurrency market cap decreased by 0.3%, settling at around $2.24 trillion over the last 24 hours. Other major crypto tokens, including BNB, XRP, Cardano, Polkadot, Polygon, Litecoin, and Uniswap, fell by up to 3%, while Solana, Dogecoin, Tron, Toncoin, Avalanche, and Chainlink surged by up to 4%.

The volume of all stablecoins is now $46.3 billion, representing 91.5% of the total crypto market’s 24-hour volume, according to CoinMarketCap data. In the same period, Bitcoin’s market cap dropped to $1.258 trillion, with a dominance of 56.21%. BTC’s 24-hour trading volume also declined by 0.4% to $20 billion.

Ryan Lee, Chief Analyst at Bitget Research, pointed out key factors to watch this week: “The trend in U.S. capital markets and the inflow and outflow of BTC ETFs will be crucial. If BTC ETFs see continued net inflows, Bitcoin could stabilize at $64,000; otherwise, we might see a dip.”

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

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