Bitcoin Price Falls Below $116K Amid Fed and Geopolitical Pressure
Bitcoin slipped below $116,000 on Monday, reversing sharply from last week’s record highs. The decline came as fading hopes for aggressive Federal Reserve rate cuts and rising geopolitical risks weighed on investor appetite for risk.
The world’s largest cryptocurrency was last down 2% at $115,664.50 as of 01:58 ET (05:58 GMT).
Bitcoin had surged above $124,000 last week, but momentum faded after hotter-than-expected U.S. producer price data reignited fears of tariff-driven inflation.
Fed Outlook and Geopolitics Drive Market Caution
Stronger U.S. Producer Price Index and import price data last week cut expectations for a sharp Fed cut in September. According to CME FedWatch, markets now see a 25-basis-point cut instead of the earlier bets on a half-point reduction.
Meanwhile, the Alaska summit between President Donald Trump and Russian President Vladimir Putin ended without a breakthrough on Ukraine. Trump signaled support for a full peace deal rather than a ceasefire, a move analysts say strengthens Moscow’s position.
Attention now turns to Trump’s planned meeting in Washington with Ukrainian President Volodymyr Zelenskiy and European leaders. Investors remain cautious as uncertainty over the talks keeps demand strong for safe-haven assets like gold, while limiting flows into Bitcoin and riskier assets.
Crypto Prices Today: Altcoins Follow Bitcoin Lower
The weakness in Bitcoin spread across the broader crypto market, with most altcoins posting sharp losses.
- Ethereum (ETH) dropped 2.9% to $4,301.61, pulling back from last week’s near-record highs.
- XRP fell 4.3% to $2.98.
- Solana (SOL) declined 5.1%, while Cardano (ADA) slipped 2.4%.
- Polygon (MATIC) lost 2%.
Among meme tokens, Dogecoin (DOGE) dropped 3.9%, while $TRUMP fell 1.7%.
