Bitcoin stabilized on Monday after experiencing a sharp decline over the weekend, which saw the cryptocurrency retreat from recent highs. Investors are now keenly focused on upcoming signals regarding U.S. interest rates.

Key Points:

1. Recent Price Movement:

   • Bitcoin hit a high of $72,000 last week, approaching record levels seen in March.
   • The cryptocurrency then experienced significant profit-taking and fell as the dollar strengthened.
   • As of 02:04 ET (06:04 GMT) on Monday, Bitcoin was up 0.3% over the past 24 hours, trading at $69,534.4.

2. Impact of U.S. Economic Data:

   • The decline over the weekend followed a hotter-than-expected nonfarm payrolls report, prompting traders to reconsider their expectations that the Federal Reserve would cut rates in September.
   • The stronger dollar, influenced by the payrolls report, exerted pressure on broader crypto prices.

3. Upcoming Federal Reserve Meeting:

   • The Fed is widely expected to maintain current interest rates at the conclusion of its two-day meeting on Wednesday.
   • However, the Fed's forward guidance on rates will be scrutinized closely by investors.

4. Consumer Price Index (CPI) Data:

   • CPI inflation data, due on Wednesday, is expected to show inflation remaining well above the Fed's 2% annual target.
   • Persistently high inflation could diminish the likelihood of rate cuts in the near future, affecting Bitcoin and the broader cryptocurrency market negatively.

5. Market Outlook:

   • High-for-longer interest rates are typically unfavorable for Bitcoin and other cryptocurrencies, which benefit from increased liquidity and loose lending conditions.

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