Bitcoin Falls Below $116,000 Amid Growing Macro Uncertainty
Bitcoin falls 2% below $116,000 as Fed rate cut expectations ease.
Geopolitical risks rise after Alaska summit; gold prices increase ahead of key talks.
Altcoins tumble: Ethereum down 2.9% at $4,301.61, XRP falls 4.3%, broad crypto sell-off.
Bitcoin Dips Below $116,000 Amid Shifting Fed Expectations
Bitcoin slid below the 116,000 mark on Monday, retreating sharply from its record highs achieved last week. The world's largest cryptocurrency last traded 2% down at $115,664.5 as of 01:58 ET (05:58 GMT).
This pullback follows Bitcoin's peak above $124,000, triggered by rising concerns over inflation after stronger-than-forecast U.S. producer price data.
The data rekindled worries related to tariff-driven inflation, dampening hopes of aggressive Federal Reserve easing. Market sentiment now reflects anticipation of a modest 25-basis-point rate cut in September, a shift from earlier expectations of a half-point reduction, according to CME Fedwatch.
Geopolitical Tensions Weigh on Investor Confidence
Investor sentiment remained cautious amid heightened geopolitical risks following last week's Alaska summit between U.S. President Donald Trump and Russian President Vladimir Putin, which concluded without agreement on the Ukraine conflict. In a surprising alignment with Moscow, Trump advocated for pursuing a full peace deal before a ceasefire, a position viewed as favorable to Putin.
Market participants are now closely watching Trump's scheduled meetings with Ukrainian President Volodymyr Zelenskiy and European leaders in Washington, uncertain whether these talks will ease tensions or fuel further volatility.
This unease has driven a shift toward safe-haven assets like gold, which saw price increases on Monday ahead of the key diplomatic events.
Altcoins Follow Bitcoin Lower Amid Broad Market Sell-off
Alongside Bitcoin, most alternative cryptocurrencies experienced sharp declines Monday, reflecting a broader retreat from risk assets.
Ethereum dropped 2.9% to $4,301.61.
XRP fell 4.3% at $2.98.
Solana declined 5.1%.
Cardano was down 2.4%.
Polygon lost 2%.
Meme tokens also suffered losses, with Dogecoin slipping 3.9%, and $TRUMP falling 1.7%.
This widespread sell-off underscores the cautious stance investors are adopting amid economic uncertainties and geopolitical developments.
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