Investing.com — Prices rose modestly on Monday after rebounding over the weekend, but the token remained range-bound amid persistent caution over the outlook for U.S. interest rates.
The world's largest cryptocurrency was little moved over the past 24 hours, steady at $67,085.1 by 9:13 pm ET. It remains largely within the $60,000 to $70,000 trading range that has been established since mid-March, with little catalyst for an immediate breakout.
Demand for Bitcoin was also overshadowed by the phenomenal rise in metals markets. A combination of demand for safe-haven assets and long positioning pushed the stock to a record high on Monday.
Bitcoin remains rangebound as further Fed cues come into view
This week's focus was squarely on further cues from the Fed that are likely to be factored into the interest rate outlook.
The Fed's late April meeting is scheduled for this Wednesday, and a series of Fed officials, primarily members of its rate-setting committee, are scheduled to speak this week.
Further cues on interest rates will be the main focus, with the market's focus on September's rate cut after April's slightly weaker inflation readings. But Fed officials warned they needed to do more to convince the central bank that inflation was easing.
It also firmed up from last week's decline, limiting Bitcoin's significant gains. Concerns over possible geopolitical instability in the Middle East also dampened risk appetite, with traders leaning toward safe-haven assets such as gold and the dollar following the deaths of Iran's president and foreign minister in a helicopter crash.
This comes as the hype around the Spot Bitcoin exchange-traded fund, which was launched earlier this year, dries up and capital inflows into cryptocurrency investment vehicles decline.
Crypto prices today: Altcoins track subdued movement in Bitcoin
Most major altcoins also ranged sideways to lows on Monday, tracking Bitcoin's subdued movement as sentiment remained subdued.
The world's second-largest token rose 0.4% to $3,090.91, but fell 0.3%. It rose by 5.1%.
Performance of meme coins was mixed, with DOGE and SHIB rising 1.2%, while SHIB was flat.
Altcoins have struggled to gain traction in recent months as the majority of crypto capital flows continue to be biased toward Bitcoin. Potential regulatory moves against Ethereum by the Securities and Exchange Commission are also dampening demand for altcoins.
Number of new Bitcoin wallets is lowest since 2018
The number of new Bitcoin wallets has plummeted to its lowest level since 2018, indicating waning interest and reduced activity within the Bitcoin ecosystem.
According to data from The Block, an average of only 275,000 addresses were added to the Bitcoin network each day over the past week, compared to 625,000 addresses six months ago.
Other closely watched metrics have also declined, such as miner revenue, measured by hash rate, hitting an all-time low. Transaction fees and on-chain volume metrics are also in the red.
Meanwhile, new protocols on the Bitcoin network are attracting record interest from venture capital firms, potentially paving the way for a future resurgence, despite the current downturn in on-chain metrics.
