Bitcoin BTC +1.57% posted an uptick on Monday as traders await United States inflation data, which could help determine whether and when the Federal Reserve might lower borrowing costs in 2024.

The largest digital asset by market cap is holding above the $62,000 mark, having posted an uptick of almost 3% in the past 24 hours to trade at $62,815 at 5:02 a.m. ET, according to The Block’s Price Page. 

Bitcoin posted an uptick of nearly 3% in the past 24 hours. Image: The Block.

Recent U.S. economic data suggest that the nation's economy is experiencing a slight slowdown compared to the more buoyant conditions of 2023. U.S. employment data for April revealed weaker growth than analysts had anticipated for the first time in months. If this trend persists, it could exert pressure on the Federal Reserve to cut rates to prevent a significant economic downturn. Consequently, investors are seeking confirmation regarding the persistence of inflation — data that could provide further insight into the extent, timing and overall likelihood of rate cuts this year.

This week, the market will have an opportunity for more insight, with U.S. inflation readings in the form of the Producer Price Index (PPI) on Tuesday followed by the Consumer Price Index (CPI) on Wednesday.

Ahead of this week's inflation prints, the CME's FedWatch tool is forecasting a 24.6% chance of a rate cut at July's Federal Open Market Committee (FOMC) meeting and a 48.6% at September's meeting. Interest traders forecast a 96.5% chance that rates will remain unchanged at June's meeting.

"Unless the Fed clearly rules out rate cuts or hints at rate hikes, it seems like the markets will continue to price in cuts. These expectations are likely to keep a bullish tone in the market for a while," QCP Capital analysts said.