Bitcoin Price Rises to One-Month High

Bitcoin’s price rose to a one-month high on Monday, extending gains from the prior week due to an interest rate cut by the Federal Reserve, amid anticipation of more cues this week.

Market Overview

Trading volumes were limited by a market holiday in Japan, keeping traders on the sidelines as they awaited more information on interest rates.

Bitcoin initially climbed near the $64,000 mark before retreating to $63,250.00 by 10:01 ET (14:01 GMT). This marks an extension of a breakout from the $50,000 to $60,000 range observed for most of the year.

Bitcoin Outpaces Crypto Markets

Bitcoin has largely outperformed broader cryptocurrency markets, with a positive risk appetite prevailing ahead of more cues regarding interest rates and the U.S. economy. Several Federal Reserve officials are scheduled to speak soon, with attention focused on Chair Jerome Powell's address on Thursday.

The PCE price index data—preferred inflation gauge of the Fed—is set to be released on Friday and is likely to influence the Fed’s interest rate plans. After cutting rates by 50 basis points last week, the Fed suggested the beginning of an easing cycle that could lower rates by at least 125 basis points this year.

Elsewhere, central bank meetings in Switzerland and Sweden are also on the agenda, with both anticipated to cut rates.

Lower interest rates are typically favorable for Bitcoin as they increase liquidity for speculative investments like crypto. However, overall gains are constrained since the Fed indicated minimal reductions in medium- to long-term rates.

Uncertain regulatory conditions, particularly with the upcoming 2024 U.S. election, further complicate the situation. Additionally, recent hawkish signals from the Bank of Japan limited Bitcoin's rise, though changes in government leadership may alter future rate hike resistance.

Crypto Market Status

Broader cryptocurrency markets displayed mixed results. The second-largest cryptocurrency, Ether, rose by 2.7% to $2,642.20. Meanwhile, SOL and XRP fell by 0.4% each, with ADA and MATIC rising by less than 1%. Meme token DOGE remained flat.

Riot Platforms and Bitfarms Settlement

In other crypto news, Riot Platforms’ bid to take control of Bitfarms appears stalled following a joint settlement announcement. Bitfarms co-founder Andres Finkielsztain resigned from the board, replaced by Riot’s independent director appointee Amy Freedman.

As part of the agreement, Riot has retracted its requisition and is bound to standard standstill provisions until Bitfarms’ 2026 annual meeting, with some exceptions. The agreement was reached before a scheduled virtual special meeting of Bitfarms shareholders on November 6, which may be postponed.

Initially, Riot offered approximately $950 million to acquire Bitfarms in April, but retracted its bid in June due to a lack of engagement from Bitfarms’ board. Despite not proceeding with the acquisition, Riot has become Bitfarms’ largest shareholder, owning 90,110,912 common shares—roughly 19.9% of the company.

Ambar Warrick contributed to this report.