Bitcoin rose over 4% on Monday on track for the first profit in five days away from a week low at $80,000 after marking the worst weekly performance this year as traders were disappointed by US reserve plans. 

Current gains are underpinned by Wall Street’s rebound from recent five-month lows amid hopes for a Fed rate cut in the first half of the year.

The Price

Bitcoin rose 4% at Bitstamp today to $84,007, with a session-low at $80077.

On Sunday, bitcoin dropped 6.4% at Bitstamp, the fourth loss in a row, plumbing a week trough at $80,000.

Last week, bitcoin swooned 14.5%, the second weekly loss in a row and the heftiest since October 2024.

The losses intensified after the announcement of the disappointing US crypto strategic reserve plans. 

Crypto Market Value 

Crypto market value rallied over $75 billion on Monday to a total of $2.850 trillion.

Wall Street

US stock indices closed higher on Friday away from recent five-month lows, following somewhat weak labor data, which bolstered hopes for a Fed rate cut in the first half of the year.

Now traders await important US inflation data, expected to provide fresh pricing for the path ahead this year for US interest rates. 

The US dollar declined in European trade on Monday against a basket of major rivals, on track for the sixth loss in a row, about to plumb four-month lows amid concerns about US growth due to Trump’s trade policies. 

The US economy added less jobs than expected in February, bolstering the odds of a Fed rate cut during the first half of the year, with traders now waiting for US inflation data this week to gather more clues. 

The Index

The dollar index fell 0.35% today to 103.56, with a session-high at 104.03.

On Friday, the index lost 0.25%, the fifth loss in a row, plumbing four-month lows at 103.46 following weak US labor data. 

The index lost 3.4% last week, the fourth weekly loss in five weeks, and the heftiest since November 2022.

Growth Concerns 

Investors are worried about slower US growth after aggressive tariffs on major trade partners, while recent labor data and government layoffs raised more concerns. 

US Treasury Secretary Scott Bessent said the economy might slow down as it shifts from government spending to private investments, and reaches a more sustainable balance.

He believes that some tariff levels will always be necessary to fix some economic imbalances around the world and secure more stable supply chains.

President Trump said during a Fox News interview that the US is undergoing a transition phase, with return of wealth to the US through trade and economic policies, including tariffs to boost local industry.

US Rates

Fed Chair Jerome Powell said it remains to be seen whether Trump’s tariff plans will be inflationary. 

According to the Fedwatch tool, the odds of a Fed 0.25% rate cut in March stood at just 3%.

Now investors await important US inflation data this week to gather more clues.

Silver prices fell in European trade on Monday on track for the third straight loss away from two-week highs on profit-taking, amid concerns about Chinese growth and weaker silver demand. 

The white metal’s losses were stymied by the US dollar's decline against major rivals amid mounting concerns about the US economy ahead of inflation data this week.

Prices

Silver prices fell 0.6% today to $32.33 an ounce, with a session-high at $32.67.

On Friday, silver lost 0.35% on profit-taking away from two-week highs at $32.77.

Silver tumbled 4.5% last week, the sixth weekly loss in seven weeks, and the largest in 2025.

The huge gains came as both the dollar and US treasury yields swooned, while Chinese stimulus hopes rebounded.

Deflationary Pressures

Recent data showed China’s consumer prices slowed down to 13-month slows in February, while producer prices contracted for the 30th month in a row.

Such deflationary pressures will no doubt impact economic activities in China and actual demand on precious metals. 

US Dollar

The dollar index fell 0.35% on Monday on track for the sixth loss in a row, plumbing four-month lows at 103.46 against a basket of major rivals.

A weaker dollar makes greenback-denominated metals cheaper to holders of other currencies. 

Investors are concerned that Donald Trump’s aggressive trade policies would hurt growth both in the US and globally.

Gold prices rose in European trade on Monday to near a week high, while holding its ground above $2900 with the dollar weakening.

Now investors await US inflation data for February, expected to offer fresh pricing for the odds of a Fed rate cut in March.

The Price

Gold prices rose 0.35% today to $2918 an ounce, with a session-low at $2896.

Gold lost 0.1% on Friday on profit-taking away from a week high at $2930.

Gold rallied 1.8% last week, the ninth weekly profit in two and a half months on haven demand.

The Dollar

The dollar index fell 0.35% on Monday on track for the sixth loss in a row, plumbing a four-month trough at 103.46 against a basket of major rivals.

A weaker dollar makes greenback-denominated gold futures cheaper to holders of other currencies.

Investors are concerned that Donald Trump’s aggressive trade policies would hurt growth both in the US and globally.

US Rates

Fed Chair Jerome Powell said it remains to be seen whether Trump’s tariff plans will be inflationary. 

According to the Fedwatch tool, the odds of a Fed 0.25% rate cut in March stood at just 3%.

Now investors await important US inflation data this week to gather more clues.

The SPDR

Gold holdings at the SPDR Gold Trust fell 4.3 tons on Friday, the third drop in a row to a total of 894.34 tons, the lowest since February 20.