Bitcoin managed to pull itself up a little after hitting its lowest level in more than six months. Even then, it stayed weak because traders are no longer expecting the Federal Reserve to cut interest rates next month. Many investors are also nervous because several major US economic reports were delayed during the government shutdown.
Bitcoin was trading close to ninety four thousand seven hundred dollars on Monday afternoon. In the past day it even dropped to around ninety three thousand dollars, a level last seen in late April. The coin fell almost seven percent last week. That made it the third week in a row where Bitcoin finished lower.
Traders now think the chances of a rate cut in December are much smaller. At the start of the month, most people expected the Fed to cut rates. Now the market sees only about a forty percent chance. Several Fed officials have spoken in recent days and many of them said they are not ready to ease policy again. They pointed to mixed inflation readings and a labour market that still looks strong. Boston Fed President Susan Collins said she would need to see weaker data before supporting another cut.
Crypto prices had soared earlier this year because many traders believed large rate cuts were coming. Now those hopes are fading and the market is losing energy. Bitcoin exchange traded funds are also seeing more money leave, as investors unwind positions built on expectations of easier Fed policy.
The recent US government shutdown made things worse. Important data from the Bureau of Labor Statistics was delayed. Investors had no major numbers to look at for weeks. The September jobs report is now expected on Thursday.
Japan is also making news in the crypto world. Reports say the country’s Financial Services Agency may soon classify cryptocurrencies as financial products. This means coins like Bitcoin and Ethereum would fall under insider trading laws. People would no longer be able to trade using private or undisclosed information. The agency is also pushing to lower taxes on crypto profits to a flat twenty percent, similar to how stocks are taxed.
Meanwhile, Strategy, the company formerly known as MicroStrategy, bought even more Bitcoin last week. The firm is run by billionaire Michael Saylor. It added more than eight thousand coins, spending over eight hundred thirty five million dollars. The average price was about one hundred two thousand dollars per coin. Strategy now owns almost six hundred fifty thousand Bitcoin in total.
Altcoins were mostly quiet. Ethereum slipped a little. XRP gained slightly. Solana, Cardano and Polygon saw small declines. Dogecoin edged higher, while the token named Trump barely moved.