Bitcoin declined on Monday after suffering sharp losses over the weekend, as elevated oil prices, persistent weakness in technology stocks and expectations of hawkish signals from major central banks weighed on cryptocurrency sentiment.
The world’s largest cryptocurrency eased 0.22 percent to $80,158, remaining near the lower end of its $80,000-$87,000 trading range established over the past month. Meanwhile, Ether eased 0.27 percent to $2,328.59.
Central bank outlook weighs on risk appetite
Bitcoin shed around $2,000 over the weekend as investor sentiment remained subdued amid a sustained decline in global technology stocks and growing caution ahead of monetary policy decisions by the world’s largest central banks.
The Federal Reserve, European Central Bank and Bank of Japan are scheduled to meet this week, with all three widely expected to leave interest rates unchanged.
However, policymakers are expected to maintain a hawkish tone amid persistent inflationary pressures and energy market risks, potentially leaving the door open to further rate hikes later this year.
Higher interest rates typically weigh on speculative assets such as cryptocurrencies by increasing the relative appeal of interest-bearing investments and tightening financial conditions, potentially adding further pressure on prices.
Oil prices retreated on Monday from six-month highs following reports of renewed talks between Middle Eastern powers and Iran. However, prices remained close to annual peaks, keeping concerns over the global economic outlook and inflation firmly in focus.
Major cryptocurrencies post modest gains
Broader cryptocurrency markets edged higher as Bitcoin and Ether declined.
Solana advanced 0.83 percent and Cardano rose 0.7 percent. BNB added 0.51 percent, while XRP rose 0.06 percent.
Among meme-based cryptocurrencies, Dogecoin climbed 0.94 percent and $TRUMP rose 0.8 percent.
The market’s muted performance also highlighted the weakness of the seasonal rally commonly known as “Uptober”, which failed to materialize for a second consecutive year as retail and institutional sentiment towards cryptocurrencies remained subdued.
