Bitcoin started the European session without a clear direction, remaining below the USD 60,000 level.
The asset’s performance reflected investors’ uncertainty as it continued to trade within a range for the past few days.
Volatility could return gradually to a certain extent in response to new economic data although price movements could remain subdued before the upcoming Fed meeting on September 18.
While a rate cut is anticipated, the market continues to price in a slight probability for a more aggressive 50 basis points reduction. Larger interest rate cuts could support Bitcoin, as a looser monetary policy could boost risk appetite.
The release of key economic indicators later this week, such as PMIs and unemployment data, could shift market sentiment. If the US economy demonstrates continued strength, investors might become more inclined to take risks, potentially driving Bitcoin’s valuation higher in particular if interest rates start declining at a rapid pace.
