Bitcoin’s price steadied on Monday following a sharp fall over the weekend, pulling back from recent highs as traders focused on upcoming key signals regarding U.S. interest rates. Last week, the world’s largest cryptocurrency surged to $72,000, nearing its record highs from March. However, a wave of profit-taking and a rebound in the dollar caused Bitcoin to weaken starting Friday.

As of 02:04 ET (06:04 GMT), Bitcoin had risen 0.3% over the past 24 hours, stabilizing at $69,534.4.Bitcoin’s decline over the weekend followed a hotter-than-expected nonfarm payrolls report, which prompted traders to reassess their expectations that the Federal Reserve would begin cutting rates in September. This stronger-than-anticipated jobs data boosted the dollar, putting pressure on broader cryptocurrency prices.

The nonfarm payrolls report shifted market focus to the upcoming Federal Reserve meeting. The central bank is widely expected to keep rates steady at the conclusion of its two-day meeting on Wednesday. However, the Fed’s outlook on future rate movements will be closely scrutinized.

Adding to the market’s anticipation, consumer price index (CPI) inflation data is also due on Wednesday. The inflation reading is expected to show that inflation remains well above the Fed’s 2% annual target, diminishing the likelihood of rate cuts. Persistent high inflation would reinforce the Fed’s current monetary policy stance, reducing confidence in any near-term rate reductions.High-for-longer interest rates generally bode poorly for Bitcoin and the broader cryptocurrency market, as the sector typically benefits from increased liquidity and looser lending conditions. Elevated rates can dampen the appeal of riskier assets like cryptocurrencies by tightening financial conditions and reducing investor appetite for speculative investments.

As Bitcoin traders and investors await the Fed’s rate decision and the CPI data, the cryptocurrency market remains sensitive to economic indicators that influence interest rate expectations. The outcomes of these key events will likely play a significant role in shaping Bitcoin’s short-term price trajectory.

In summary, Bitcoin’s recent stabilization comes amid heightened focus on U.S. economic signals, particularly the Federal Reserve’s interest rate decisions and inflation data. The interplay between these factors and the broader market sentiment will be crucial in determining the future direction of Bitcoin prices.