Bitcoin rose on Monday, recovering from a slight weekly decline, as investors clung to expectations that the U.S. Federal Reserve would cut interest rates this week.
Gains were limited as market participants remained cautious, with previous mixed signals from policymakers dampening enthusiasm.
The world's largest cryptocurrency was trading up 2.2% at $91,398.6000 by 9:08 AM.
Bitcoin has recovered after slipping below $84,000 last week. The temporary pullback following heavy losses in November has kept investors on edge.
Expectations that the Federal Reserve will cut interest rates this week.
Bets on an interest rate cut remain in place following weaker US economic data in recent weeks. Investors see an 87% chance of a 25-basis-point cut at the Federal Reserve meeting ending December 10, encouraged by the backdrop of slowing inflation.
Friday's release of the Federal Reserve's favorite inflation gauge — the core personal consumption expenditures (PCE) price index — showed a monthly increase of 0.2%, with the annual rate falling to 2.8%, reinforcing views that price pressures are steadily easing.
The shift toward lower interest rates generally supports risk assets; however, traders remain cautious. Conflicting public statements from Federal Reserve officials in recent weeks have created uncertainty about the pace or intensity of policy easing in 2026.
Bitcoin began its sharp rise at the end of 2024 amid growing expectations of a Federal Reserve shift, with easing financial conditions seen as a key catalyst. Lower interest rates typically weaken the dollar and boost the appeal of non-yielding assets like Bitcoin, which could help sustain gains if economic data continues to weaken.
Market attention will now turn to the Fed's statement and Chairman Jerome Powell's comments later this week.
Cryptocurrency prices today: Altcoins rise in limited trading range
Most alternative currencies rose in line with the broader cryptocurrency markets, but traded within narrow ranges.
Ethereum, the world's second-largest cryptocurrency, rose 3% to $3,127.9200.
XRP, the world's third-largest cryptocurrency, rose 2.5% to $2.0800.
Solana and Cardano each rose by 2%, while Polygon remained virtually unchanged.
Among the meme currencies, Dogecoin rose by 1.5% and TRUMP fell by 0.5%.
