Bitcoin gained ground on Monday and resumed its gains near two-week highs, thus readying to surpass the $85,000 barrier on positive sentiment following new purchases by major corporations. 

Japan’s MetaPlanet raised its bitcoin holdings to a new record high, boosting institutional confidence in bitcoin and underpinning the crypto market.

The Price

Bitcoin rose 2.1% today at Bitstamp to $85,496, with a session-low at $83,680.

On Sunday, bitcoin lost 1.8%, the first loss in three days on profit-taking away from a two-week high at $86,084.

Bitcoin surged 7% last week, the first weekly profit in three weeks on short-covering.

Crypto Market Value 

The market value of cryptocurrencies rose $55 billion on Monday to a total of $2792 trillion.

MetaPlanet 

Japan’s MetaPlanet acquired 319 additional bitcoin units in April, worth about $26.33 million.

Thus total bitcoin holdings for the company are now up to a record 4525 units, worth $377.64 million, averaging $83,456 per unit.

It’s a similar strategy to US company Microstrategy, which continued to expand its bitcoin holdings in recent months as well.

US Rates

Recent US data showed inflation slowed down more than expected in March, reducing the pressure on Fed’s policymakers.

Following the data, the odds of a Fed 0.25% rate cut in May rose from 15% to 25%, while the odds of such a cut in June rallied to 85%.

Now traders await a batch of remarks by several Fed officials today, including Deputy Chair Christopher Waller to gather more clues.

The US dollar fell in European trade on Monday against a basket of major rivals, on track for the third loss in a row, almost touching three-year lows amid concerns about US recession to President Donald Trump’s aggressive tariffs. 

Now investors await important remarks by Fed officials later today, looking for clues on the future path of US interest rates.

The Index

The dollar index fell 0.6% today to 99.21, with a session-high at 100.07.

On Friday, the index slid 1.15%, plumbing three-year lows at 99.01 after forecast-missing producer prices data.

The index lost 3% last week, the third weekly loss in a row amid a selloff wave as investors worry about a potential US recession to the trade war with China.

US Assets

Confidence in the US economy tumbled, prompting investors to dump US assets in favor of other safe havens such as the Swiss franc and gold.

Recent US data showed inflation slowed down more than expected in March, reducing the pressure on Fed’s policymakers.

Following the data, the odds of a Fed 0.25% rate cut in May rose from 15% to 25%, while the odds of such a cut in June rallied to 85%.

Now traders await a batch of remarks by several Fed officials today, including Deputy Chair Christopher Waller to gather more clues.

Gold prices fell in European trade on Monday for the first time in four days away from recent record highs scaled in Asian trading, amid active profit-taking.

The precious metal will test the historic barrier at $3200, with the losses contained by the weaker dollar against major rivals ahead of remarks by Fed officials later today.

The Price

Gold prices fell 1% today to $3206 an ounce, with a record high at $3245.

On Friday, gold rose 2%, the third profit in a row.

Gold prices rallied 6.6% last week, the largest weekly profit since March 2020 on surging haven demand amid the escalating US-China trade war.

The US Dollar

The dollar index fell 0.6% on Monday, extending its losses for the third straight session and about to plumb three-year lows at 99.01 against a basket of major rivals.

The dollar’s weakness comes as investors flee US assets with sentiment souring towards the US economy overall due to Trump’s aggressive tariffs.

US Rates

Recent US data showed inflation slowed down more than expected in March, reducing the pressure on Fed’s policymakers.

Following the data, the odds of a Fed 0.25% rate cut in May rose from 15% to 25%, while the odds of such a cut in June rallied to 85%.

SPDR

Gold holdings at the SPDR Gold Trust ose 3.44 tons yesterday to a total of 953.15 tons, the highest since September 20, 2022.

The euro rose in European trade on Monday against a basket of major rivals, heading for the third straight profit in a row against the dollar and trading near three-year highs after the EU suspended its retaliatory tariffs on US products for 90 days.

The EU is currently engaging in intensive trade negotiations with the US, with the European Central Bank monitoring the situation closely to intervene with various monetary tools if negotiations fail.

The Price

The EUR/USD price rose 0.45% today to $1.1409, with a session-low at $1.1315.

The euro rallied 1.45% on Friday against the dollar, hitting three-year highs at $1.1474 as the EU suspended retaliatory tariffs.

The euro surged 3.6 % last week, the third weekly profit in a row on hopes for a trade deal between the EU and the US.

Retaliatory Tariffs Paused

The European Commission paused the first batch of retaliatory tariffs on US goods for 90 days and engaged in negotiations with the US.

It comes after US President Donald Trump suspended global reciprocal tariffs for the same duration.

European Commission President Ursula von der Leyen said the EU wants to give negotiations a real chance but maintained their capability of activating counter measures if talks failed to produce results.

Der Leyen said the EU offered the US “zero for zero” tariff deal to avoid a trade war.

European Economy Stimulus  

According to sources, the EU is working on a package of emergency measures to boost parts of the economy that were particularly hit by the threat of US tariffs.

Otherwise, European Central Bank President Christine Lagarde said the ECB is ready to use all its tools to maintain financial stability in times of crisis.