Bitcoin slid Monday, erasing much of its sharp rally last week, as investors booked profits despite stronger expectations for a Federal Reserve rate cut. The world’s largest cryptocurrency dropped 2.1% to $112,550.5 at 01:27 ET (05:27 GMT), hovering just above a six-week low of $111,000.
On Friday, Bitcoin had briefly topped $117,000 after Fed Chair Jerome Powell signaled at the Jackson Hole Symposium that September could bring a policy shift. Powell acknowledged labor market risks and hinted that “the shifting balance of risks may warrant adjusting our policy stance.”
That dovish signal sparked buying across risk assets, including cryptocurrencies. But Bitcoin’s rally proved short-lived. Analysts cited technical resistance, profit-taking, and a broader consolidation phase as drivers of the pullback.
Japan Moves Toward Supportive Regulation
Japan’s Finance Minister Katsunobu Kato reinforced the government’s commitment to nurturing a supportive environment for crypto markets. On Monday, Kato said digital assets could serve as part of diversified investment portfolios, marking a clear step toward mainstream adoption.
Authorities in Tokyo are seeking to balance innovation with financial safeguards as crypto plays a growing role in capital markets. The pledge comes amid broader global efforts to clarify frameworks for digital assets and protect investors from volatility.
Key takeaways from Kato’s remarks:
- Japan will craft a more supportive crypto regulatory framework.
- Digital assets could play a role in diversified portfolios.
- Investor protections will remain central to policy.
His comments highlight Japan’s effort to position itself as a leader in regulated crypto adoption while ensuring stability in financial markets.
Altcoins Mixed, Ether Near Highs
The broader cryptocurrency market was subdued, with altcoins tracking Bitcoin’s weakness. Ether, the world’s second-largest token, slipped 1.7% to $4,715.73 after hitting a record $4,955 in the prior session.
Other major tokens also declined:
- XRP fell 1.7% to $3.00.
- Solana dropped 0.8%.
- Cardano slipped 0.7%.
- Polygon edged down 0.2%.
Meme tokens extended losses, with Dogecoin down 3% and $TRUMP lower by 1.6%.
Despite weakness in the short term, crypto remains underpinned by optimism over easier U.S. monetary policy and expanding global regulatory clarity. For now, however, Bitcoin’s retreat underscores the fragile balance between speculative momentum and profit-taking pressure.