Cryptocurrency prices rose on Monday, with the biggest coins in line to complete a month of strong gains buoyed by signs that the US Federal Reserve will slow the pace of its interest rate increases.
Bitcoin traded at $23,743.71 on Monday, up 2.2 per cent from the previous day, according to CoinGecko. It has plunged from an all-time high of nearly $70,000 in November 2021. Prices of ether added 2.3 per cent.
Bitcoin prices have rallied more than 40 per cent this month, having endured several rounds of sell-offs over the past year, most recently triggered by the collapse of major exchange FTX.
US headline inflation fell to its lowest level in more than a year in December. Investors now expect the Federal Reserve to raise rates by just 0.25 percentage points at its Wednesday meeting — a slowdown from December’s 0.5 percentage point increase — allowing for more “risk-on” investment strategies.
A series of cryptocurrency-linked exchange traded funds have also rallied off the back of the easing concerns over interest rates.
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