The crypto market fell again today. Investors are looking forward to the important US jobs report that will be released on Friday and are wondering what that means for interest rate policy. Will there be a final interest rate cut this year, or would that actually indicate a weakening economy?
Bessent warns of the consequences of high interest rates
Bitcoin (BTC) today stands at $107,500, down 3 percent on a daily basis. Ethereum (ETH) is performing even weaker, dropping 5 percent to $3,720. Coins such as Solana (SOL) and XRP are also under heavy pressure, with losses of 6 and 4.6 percent.
US Treasury Secretary Scott Bessent said in an interview with CNN that high interest rates “may have pushed parts of the economy, especially the housing market, into recession.” According to him, there is now room for the central bank to lower interest rates.
The statements briefly gave the market some breathing space, because lower interest rates are usually favorable for crypto. However, the recovery did not last long. Whether interest rate cuts will bring calm to a weaker economy or cause more volatility remains unclear.
Important limit around $113,000
According to analytics firm Glassnode, Bitcoin continues to struggle to break above $113,000, the average purchase level for short-term holders. That price level is an important dividing line between an upward and downward trend.
Bitcoin has now been trading below that limit for three weeks. If there is a further decline, the next support is around $88,000, a level that has served as a bottom several times in previous corrections, according to Glassnode.
All eyes on the jobs report
The new figures on the American labor market will be released on Friday afternoon. Analysts expect the number of new jobs to decline slightly, while unemployment will remain approximately the same.
The numbers can determine the Federal Reserve’s interest rate policy. A strong report could mean interest rates stay high for longer, which would be bad news for crypto. But if the figures turn out weak, this could increase the chance of interest rate cuts, although this also points to a cooling economy.
For the time being, the market remains in anticipation. Investors are hoping for clarity from the jobs report. Until then, caution seems to prevail, and the Bitcoin price remains under pressure.
Source: https://newsbit.nl/crypto-zakt-weg-voor-amerikaans-banenrapport-beleggers-blijven-voorzichtig/
