Cryptocurrency prices rose during trading on Monday, as investors awaited US inflation data due this week, looking for indicators to help determine the direction of the Federal Reserve's monetary policy, amid continued expectations of a possible interest rate hike in the coming months.
Bitcoin rose 0.39% to $83,930.75, an increase of $323.90, approaching the $84,000 level, but it remains down more than 4% since the beginning of 2026.
Ethereum also rose by 1.16% to $2,563.23, with gains of $29.63, while Ripple climbed by 0.24% to $1.4121, an increase of $0.0033.
According to Reuters, markets are focused on the US Consumer Price Index (CPI), due for release on Wednesday, as it is one of the key indicators the Federal Reserve uses to assess the trajectory of inflation. Investors are also awaiting the Producer Price Index (PPI) and retail sales data, due on Thursday, for a broader picture of price pressures and the strength of consumer spending.
According to the CME Group’s FedWatch tool, markets are pricing in a 17% probability of an interest rate hike in October, rising to 86% by December, reflecting continued concerns that inflationary pressures will remain at levels that may warrant further monetary tightening.
It is worth noting that cryptocurrencies are greatly affected by interest rate expectations and market liquidity; rising interest rates may increase the attractiveness of fixed-income assets and put pressure on high-risk assets, while indicators of slowing inflation may support expectations of stable monetary policy, thus providing room for improved performance of digital currencies.
However, market movements will remain dependent on the results of US data and its impact on interest rate expectations, along with the trends of the dollar and Treasury bond yields, at a time when Bitcoin is still recording losses since the beginning of the year despite its rise during recent trading.
