Bitcoin muted at $80.5k as oil, rate jitters dent crypto appetite

Investing.com– Bitcoin moved marginally on Monday after logging sharp losses over the weekend, as persistent concerns over rising oil prices and anticipation of key central bank meetings largely dented appetite for cryptocurrencies.

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The world’s largest crypto edged up 0.3% to $80,560.7 by 05:46 ET (09:46 GMT).

Bitcoin slid by about $2,000 over the weekend as sentiment showed little improvement amid a sustained decline in global technology stocks, and as markets positioned for more hawkish signals from the world’s biggest central banks in the coming days.

Oil, rate jitters pressure Bitcoin

Bitcoin was trading close to the bottom end of an $80,000 to $87,000 trading range established over the past month, amid a dearth of positive cues for crypto markets.

While oil prices slid from six-month highs on Monday– following a report of more talks between Middle Eastern powers and Iran– they still remained close to annual peaks, leaving markets on edge over their impact on the global economy.

Adding to the risk aversion, a host of major central banks are set to meet this week, with the Federal Reserve, European Central Bank, and the Bank of Japan widely expected to leave interest rates unchanged.

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But all three banks are expected to present a hawkish outlook in the face of increasingly sticky inflation and energy risks, leaving the door open for more rate hikes later in the year.

Higher rates bode poorly for risky, speculative assets like crypto, and stand to further pressure prices in the long term.

Crypto price today: altcoins muted amid few positive cues

Tracking Bitcoin, broader crypto prices also rose marginally Monday.

A seasonal trend of crypto price strength in October– dubbed as “uptober”– failed to materialize for a second consecutive year, as retail and institutional sentiment towards the sector remained weak.

World no.2 crypto Ether gained 0.4% to $2,335.05, while XRP fell 0.3%.

Solana added 0.5%, Cardano rose 0.7%, while BNB gained 0.3%.

Among memecoins, Dogecoin rose 1% and $TRUMP added 0.8%.

Vahid Karaahmetovic contributed to this report.

Bitcoin steadies near $80,400 after weekend selloff, Fed decision looms

Source: finance.yahoo.com