BofA warns Fed risks policy mistake with early rate cuts
Investing.com-- Bitcoin fell below $116,000 on Monday, reversing sharply from last week’s record highs, as fading expectations for aggressive Federal Reserve easing and heightened geopolitical risks weighed on investor risk appetite.
At 10:10 ET (14:10 GMT), the world’s largest cryptocurrency traded 2.7% lower at $115,160.
Bitcoin climbed to a record above $124,000 last week, but pulled back after hotter-than-expected U.S. producer price data rekindled concerns over tariff-driven inflation.
Other tokens also tumbled on Monday, with Ether retreating further from near-record-high levels.
Softening Fed cut outlook, geopolitical risks weigh
Last week’s stronger-than-expected U.S. Producer Price Index and import price data dampened hopes of a substantial Fed rate cut in September.
Markets shifted from pricing in a half-point cut to anticipating a more modest 25-basis-point reduction, according to CME Fedwatch.
Meanwhile, the Alaska summit between U.S. President Donald Trump and Russian President Vladimir Putin ended last week without an accord on Ukraine.
Trump—who earlier pushed for a ceasefire—aligned more closely with Moscow by backing a full peace deal first, a stance seen as strengthening Putin.
Investors are bracing for further geopolitical developments as Trump is scheduled later today to meet with Ukrainian President Volodymyr Zelenskiy and key European leaders in Washington.
The market remains cautious amid uncertainty over whether these talks will yield progress or escalate risk, limiting appetite for speculative assets like Bitcoin.
Gold prices rose on Monday as investors sought safe-haven assets ahead of the key event.
Amdax plans bitcoin treasury company
Still, Amsterdam-based cryptocurrency service provider Amdax announced Monday plans to launch a bitcoin treasury company called AMBTS (Amsterdam Bitcoin Treasury Strategy) on the Dutch stock exchange, highlighting the growing appeal of the digital currency.
"With now over 10% of bitcoin supply held by corporations, governments and institutions, we think the time is right to establish a bitcoin treasury company with the aim to obtain a listing on Euronext (EPA:ENX) Amsterdam, as one of the leading exchanges in Europe," said Amdax CEO Lucas Wensing.
Strategy adds 430 BTC to its stack
Bitcoin treasury giant Strategy (NASDAQ:MSTR) has added another 430 BTC worth $51.4 million, lifting its total holdings to about 629,376 BTC as of Monday.
The latest purchase was made at an average price of $119,666 per token, part of the company’s ongoing capital-markets-driven buying strategy that has cemented its position as the largest publicly traded holder of Bitcoin.
At current market levels, Strategy’s stash is valued at roughly $72.4 billion. The company has spent about $46.2 billion in total, including fees, to acquire the coins at an average cost of $73,320 each, according to co-founder and executive chairman Michael Saylor, who disclosed the figures on Aug. 18.
Crypto price today: altcoins extend losses in line with Bitcoin
Most altcoins extended sharp declines tracking weakness in Bitcoin, and broad-based selling before risk events.
World no.2 crypto Ethereum plunged nearly 6% to $4,281.39, after jumping near record high levels last week.
World no. 3 crypto XRP dropped 4.8% to $2.97 on Monday.
Solana declined 6.2%, and Cardano slipped 7.2%, while Polygon traded flat.
Among meme tokens, Dogecoin fell 5.7%, while $TRUMP traded 5.2% lower.
Ayushman Ojha contributed to this article