Bitcoin's price rose on Tuesday, adding to a recovery from August declines as investors looked ahead to major economic data this week.
By 04:37 ET (08:37 GMT), Bitcoin had advanced by 2.5% to $58,999.7, following relatively thin trading volumes on Monday with the U.S. celebrating the Labor Day holiday.
The world's biggest cryptocurrency had slumped by more than 7% last week and spent much of the prior month trending lower due in part to concerns over token distributions and mass sale events, especially from defunct exchange Mt Gox. Concerns over a U.S. recession had also sparked deep losses across global financial markets at the beginning of August, including the crypto markets.
Attention now turns to key economic data this week, culminating with the widely-watched U.S. nonfarm payrolls release on Friday.
The U.S. Federal Reserve is widely expected to start cutting interest rates later this month, and the payrolls data could determine the size of the reduction, likely impacting wider risk sentiment. Lower rates bode well for cryptocurrencies, given that they free up more liquidity for speculative trade.
Traders are pricing in a virtual 100% chance of a 25 basis point cut in September, according to the closely-monitored CME Fedwatch Tool.
Bitcoin's September performance in focus
While Bitcoin has inched higher at the start of this week, it has shown a consistent pattern of underperformance in September.
Historical data reveals that Bitcoin has experienced negative returns in nine out of the last 13 Septembers, making it one of the worst months for the cryptocurrency with an average negative return of 5.36%.
Crypto prices today
In broader cryptocurrency prices, world no.2 digital token Ether (ETH/USD) increased by 1.2% to $2,499.99. It had dipped by more than 20% in August, its worst month since January 2022.
Solana and XRP added 4.38% and 2.89%, respectively, while Cardano shed 0.2%.
