Bitcoin declines to near six-week trough despite bets on US rate cuts

Bitcoin price fell below 112,000 dollars during Monday trading, erasing the sharp gains sparked by cautious remarks from Federal Reserve Chairman Jerome Powell, while Ethereum, the world’s second-largest cryptocurrency, traded near record levels.

The world’s largest cryptocurrency last traded down 3% at 111,610 dollars as of 06:21 a.m. Eastern time (10:21 GMT). The coin had fallen in the previous session to nearly a six-week low of around 111,000 dollars, as traders took profits after Friday’s surge.

Bitcoin erases gains from rate cut bets

Bitcoin jumped above 117,000 dollars on Friday following Powell’s cautious comments at the Jackson Hole symposium, where he acknowledged rising risks to the labor market and hinted that “the shift in the balance of risks may warrant adjusting our policy stance.”

Powell’s signal of a possible rate cut in September boosted investor sentiment, driving up risk assets including cryptocurrencies. But Bitcoin later retreated as investors moved to take profits, with analysts pointing to resistance levels and a phase of consolidation as factors behind the decline.

Japanese finance minister pledges supportive framework for cryptocurrencies

Japanese Finance Minister Katsunobu Kato said on Monday that the government would work to establish a suitable environment for digital assets. He noted that cryptocurrencies could be part of diversified investment portfolios, signaling an evolving stance toward broader market adoption.

His remarks came amid ongoing efforts to clarify regulatory rules and investor protection mechanisms in the sector. The approach reflects Japan’s commitment to balancing innovation with financial stability, at a time when authorities increasingly recognize the growing role of crypto assets in investment strategies.