On Monday, Bitcoin prices fell, continuing last week's steep decline, due to concerns over U.S. interest rates and expectations of key inflation data, which have led traders to favor the dollar.
The broad cryptocurrency market also came under pressure as the dollar reached a nearly two-month high, coupled with strong U.S. Purchasing Managers' Index data.
As of 00:59 ET (04:59 GMT), Bitcoin was down 2.4% over the past 24 hours, trading at $62,850.7.
This sentiment is unlikely to improve significantly this week, especially ahead of the key PCE price index data to be released on Friday.
This data, the Federal Reserve's preferred inflation indicator, could affect the central bank's interest rate outlook in the coming months. Although Friday's data is expected to show a moderation in inflation, it may still be well above the Fed's 2% annual target, giving the central bank more room to maintain high interest rates.
High interest rates are detrimental to cryptocurrencies as they reduce the appeal of speculative and risk-driven assets like cryptocurrencies.
Today's Cryptocurrency Prices: Altcoins Decline More Than Bitcoin
Major altcoins have fallen much more than Bitcoin, with cryptocurrency prices under greater pressure due to a large number of token unlocks, reduced institutional demand, and significant profit-taking.
