Investing.com-- Bitcoin’s price rose to a one-month high on Monday, extending gains from the prior week as traders cheered an interest rate cut by the Federal Reserve, with a slew of more cues due this week.
Trading volumes were held back by a market holiday in Japan, while anticipation of more cues on interest rates also kept traders to the sidelines.
Bitcoin initially climbed near the $64,000 mark, before retreating to $63,250.0 by 10:01 ET (14:01 GMT), extending a breakout from a $50,000 to $60,000 range seen through most of the year.
Bitcoin upbeat with more rate cut cues on tap
Bitcoin mostly outpaced broader crypto markets, although risk appetite remained upbeat before more cues on interest rates and the U.S. economy.
Several Fed officials are set to speak in the coming days, with particular focus on an address by Chair Jerome Powell on Thursday.
PCE price index data- the Fed’s preferred inflation gauge- is also due on Friday, and is likely to factor into the central bank’s plans for interest rates.
The Fed cut rates by 50 basis points last week, and flagged the beginning of an easing cycle- which analysts say could bring rates lower by at least 125 bps this year.
Beyond the Fed, central bank meetings in Switzerland and Sweden are also on tap, with both central banks expected to cut rates.
Lower rates bode well for Bitcoin, given that they free up liquidity to be invested in speculative assets such as crypto.
But overall gains in Bitcoin were still limited, given that the Fed signaled that rates may not fall by much in the medium-to-long term.
Crypto markets also have to contend with an uncertain regulatory environment, especially in the face of a tight 2024 U.S. election race.
Recent hawkish-leaning signals from the Bank of Japan also limited Bitcoin’s advance, although the BOJ is expected to face increased resistance towards future interest rate hikes from a leadership change in the Japanese government.
Crypto price today: altcoins flat
Broader cryptocurrency markets were mixed, with world no.2 crypto Ether rising 2.7% to $2,642.20
SOL and XRP fell 0.4% each, while ADA and MATIC each rose less than 1%.
Among meme tokens, DOGE traded flat.
Bitfarms and Riot Platforms (NASDAQ:RIOT) strike settlement agreement, announce board changes
Among other crypto developments, Riot Platforms' effort to take control of its Bitcoin mining competitor, Bitfarms, appears to have come to a halt, following the announcement of a joint settlement agreement by the two companies on Monday morning.
As part of the agreement, Bitfarms co-founder Andres Finkielsztain has resigned from the board, and Riot’s proposed independent director, Amy Freedman, has been appointed to replace him. Freedman, an expert in corporate governance and capital markets with over 25 years of experience, has assumed the role immediately.
Riot has also agreed to withdraw its amended requisition and adhere to typical standstill provisions until Bitfarms’ 2026 annual meeting, with some exceptions allowed.
The settlement was reached ahead of a special meeting of Bitfarms shareholders, which had been set for November 6. The meeting will still be held virtually, though it may be delayed due to the agreement to nominate a fifth independent director and hold a vote on Bitfarms’ shareholder rights plan. Riot has agreed to vote in favor of this plan. The companies noted that the meeting would take place no later than November 20.
Riot initially made a bid to acquire Bitfarms in April for approximately $950 million. In June, Riot indicated its willingness to negotiate with a revamped Bitfarms board regarding a possible acquisition, but it retracted its offer to buy the company for $2.30 per share, citing the board’s “lack of meaningful engagement.”
Since the failed acquisition, Riot has continued to purchase Bitfarms stock, becoming its largest shareholder. As of Monday, Bitfarms confirmed that Riot now owns 90,110,912 common shares, representing roughly 19.9% of the company.
Ambar Warrick contributed to this report.