Bitcoin price saw a 3% increase to $61,024.7, recouping losses from last week's market rout. The rebound was driven by improved risk sentiment and increasing bets on a deeper U.S. interest rate cut. Focus is now on upcoming inflation data.
Bitcoin Extends Rebound on Soft PPI Data
Gains in Bitcoin were influenced by softer-than-expected inflation data, raising hopes for easing data on Wednesday. This could give the Federal Reserve more room to cut interest rates, with bets on a 50 basis point cut increasing after Tuesday's PPI reading.
Mt Gox Distributions and Altcoin Performance
Reports of a $2 billion Bitcoin test transaction from the Mt Gox exchange weighed on Bitcoin's recovery. Altcoin gains were tepid, with some major tokens like Ethereum and Ripple seeing limited increases.
Analysis:
The recent rise in Bitcoin price is attributed to improved risk sentiment and bets on a deeper U.S. interest rate cut. Softer inflation data has raised hopes for easing, giving the Federal Reserve more flexibility in cutting rates. However, regulatory uncertainty in the U.S. and the Mt Gox exchange's potential selling pressure on Bitcoin could hinder further gains. Altcoin performance remains mixed, with some major tokens seeing limited increases. Investors should monitor upcoming inflation data and regulatory developments to make informed decisions on their crypto investments.