Bitcoin climbs 1.5% as traders seek fair price
Bitcoin climbed 1.5% on Monday on track for the first profit in three days amid active short-covering operation from low correctional levels.
The world’s most valuable cryptocurrency is starting once again its search for its fair pricing through active trading.
The Price
Bitcoin rose 1.5% at Bitstamp today to $96,420, with a session-low at $93,639.
On Sunday, bitcoin lost 2.2%, the second loss in a row on risk aversion.
Bitcoin tumbled 9% last week, the first weekly loss in three weeks, and the first since August on profit-taking away from a record high at $108,364.
Crypto Market Value
The market value of cryptocurrencies rose by $50 billion today to $3.470 trillion as most major units advanced.
Fair Pricing
As bitcoin pulls back from its recent record highs, it’s now positioning back and forth in search of its fair market price.
Nonetheless, several crypto analysts still expect many more gains to come to bitcoin as the US Trump administration approaches with a wide swathe of supportive policies.
US dollar gains ground towards two-year peak
The US dollar rose in European trade on Monday against a basket of major rivals, approaching two-year highs once more as US 10-year treasury yields advanced.
Following the Federal Reserve’s policy meeting last week, the odds of a January interest rate cut plummeted, with investors now waiting for more clues and speeches by policymakers.
The Price
The dollar index rose 0.3% to 108.17, with a session-low at 107.68.
The dollar index lost 0.55% on Friday, the first loss in four days on profit-taking away from a two-year high at 108.54.
It rose 0.8% last week, the third weekly profit in a row following the Fed’s bullish policy meeting.
US Yields
US 10-year treasury yields rose over 0.5% on Monday and approached seven-month highs at 4.594%, boosting the dollar’s standing.
Market sentiment is improving after the US government avoided a shutdown with Congress passing a spending bill early on Sunday.
US Rates
According to the Fedwatch tool, the odds of a 0.25% Federal Reserve interest rate cut in January stood at just 9%.
San Francisco Fed President Mary Dale and two other Fed policymakers said on Friday the Fed needs to resume rate cuts next year but might take its time, as the recalibration duration has ended.
Gold prices climb for third straight session
Gold prices rose in European trade on Monday on track for the third straight session away from four-week lows, as prices hold their ground above $2600.
Markets are waiting for remarks by several Fed officials as they look for clues on odds of a Fed interest rate cut in January.
Gold prices rose 0.4% to $2633 an ounce, with a session-low at $2617.
On Friday, gold rose 1.1%, the second profit in a row away from a four-week trough at $2583.
The precious metal lost 0.95% last week, the third weekly loss in the past month following the bullish Federal Reserve’s policy meeting.
US Rates
According to the Fedwatch tool, the odds of a 0.25% Federal Reserve interest rate cut in January stood at just 9%.
San Francisco Fed President Mary Dale and two other Fed policymakers said on Friday the Fed needs to resume rate cuts next year but might take its time, as the recalibration duration has ended.
SPDR
Gold holdings at the SPDR Gold Trust rose 16.66 tons on Friday, the largest daily increase since January 2022, to a total of 877.40 tons, the highest since November 27.
