Cryptocurrency prices today: other coins recover from weekend slump, but interest rate concerns are weighing on
Other major cryptocurrencies also rose on Monday, recovering from declines over the weekend.
The world's No. 2 cryptocurrency Ethereum rose 3.7% to $3,187.78, while Solana and XRP rose 7% and 3%, respectively.
But any major gains in the cryptocurrency are hampered by the prospect of high US interest rates for longer, following hotter-than-expected inflation data and hawkish signals from the Federal Reserve. state since last week.
Traders had largely expected the Fed to begin cutting interest rates in June – a scenario that bodes poorly for the cryptocurrency market.
Cryptocurrencies typically benefit from a low interest rate, high liquidity environment - a factor that is a key driver of the 2021 bull run.
However, this year's gains have been largely skewed towards Bitcoin, as capital flows surged into Bitcoin spot exchange-traded funds recently approved in the US market.
But this capital flow has also slowed in recent weeks, adding to uncertainty about Bitcoin's ability to make more money.
The token has largely fluctuated between $60,000 and $70,000 for a month after hitting a record high of more than $73,000 in early March.
