Crypto Strengthens, Bitcoin Approaches New Psychological Level
The cryptocurrency market returned to positive trading on Monday, driven by a weakening US dollar after the US employment report showed weakness in the labor sector. Bitcoin (BTC) rose near the psychological level of $112,000, while Ethereum (ETH) also strengthened above $3,400. Investors are increasingly optimistic that the Federal Reserve will cut interest rates this month, a move that typically boosts appetite for riskier assets, including crypto.
Furthermore, major altcoins such as Binance Coin (BNB), Solana (SOL), and Ripple (XRP) also recorded gains. Solana was in the spotlight, surging more than 5% after announcing improvements to its DeFi ecosystem and NFT activity on its network. Meanwhile, XRP moved steadily, supported by speculation that the US regulator's ruling in the Ripple case would provide greater legal certainty for the crypto asset.
Overall, the global crypto market capitalization has again surpassed $2.4 trillion. Analysts believe that if the interest rate cut trend actually materializes, there's the potential for a greater influx of fresh funds into the crypto market. However, market participants are still reminded to be wary of high volatility ahead of this week's US inflation data release, which could determine the future direction of Bitcoin and other digital assets.
Source: Newsmaker.id
