Bitcoin’s Price Climbs to One-Month High

Bitcoin’s price rose to a one-month high on Monday, building on prior week gains as traders reacted positively to an interest rate cut from the Federal Reserve.

Market Reactions

Trading volumes were subdued due to a market holiday in Japan, while traders remained cautious ahead of further interest rate signals expected this week.

Initially, Bitcoin approached the $64,000 mark but retracted to $63,250.0 by 10:01 ET (14:01 GMT), consolidating a breakout from a year-long range of $50,000 to $60,000.

Bitcoin and Rate Cuts

Bitcoin’s performance outpaced broader cryptocurrency markets, fueled by an upbeat risk appetite amidst expectations of more interest rate cues from the U.S. economy. Several Federal Reserve officials will speak soon, with particular attention on Chair Jerome Powell’s address on Thursday.

The PCE price index data—preferred inflation gauge of the Fed—is set to be released on Friday, which could influence the central bank’s interest rate strategies. Last week, the Fed cut rates by 50 basis points, indicating a beginning of an easing cycle, potentially lowering rates by at least 125 bps this year.

Alongside the Fed, rate cuts are anticipated from central banks in Switzerland and Sweden. Lower rates typically enhance liquidity available for speculative investments like cryptocurrencies.

However, overall Bitcoin gains are tempered as the Fed hinted that future rate reductions may be limited. The cryptocurrency market also faces a challenging regulatory landscape, especially given the competitive nature of the 2024 U.S. election.

Recent hawkish signals from the Bank of Japan have also curbed Bitcoin’s rise, although the BOJ might face increasing resistance for future rate hikes after leadership changes in the Japanese government.

Altcoin Performance

Broader cryptocurrency markets showed mixed results, with Ethereum (ETH) rising 2.7% to $2,642.20. Meanwhile, SOL and XRP each dropped by 0.4%, and ADA and MATIC increased by less than 1%. Meme token DOGE remained flat.

Riot Platforms and Bitfarms Agreement

In other news, Riot Platforms’ initiative to seize control of Bitcoin mining rival Bitfarms has reached a standstill following the announcement of a joint settlement on Monday.

The agreement requires Bitfarms co-founder Andres Finkielsztain to resign from the board, with Riot’s proposed independent director, Amy Freedman, taking his place. Freedman has over 25 years of experience in corporate governance and capital markets.

Riot will withdraw its amended requisition and comply with standard standstill provisions until Bitfarms’ annual meeting in 2026, with certain exceptions.

This settlement precedes a special virtual meeting of Bitfarms shareholders scheduled for November 6, which may face a delay. Riot has agreed to support Bitfarms’ shareholder rights plan at the meeting.

Riot initially aimed to acquire Bitfarms for approximately $950 million in April. After negotiations faltered, Riot later retracted its offer of $2.30 per share because of insufficient engagement from Bitfarms’ board. Riot has since emerged as Bitfarms’ largest shareholder, owning 90,110,912 common shares, equating to roughly 19.9% of the company.

Ambar Warrick contributed to this report.