Bitcoin‘s price remained stagnant on Friday, with traders displaying caution towards the crypto markets despite a weakened U.S. dollar and expectations of potential interest rate cuts later this year.
Concerns over increased regulatory actions targeting cryptocurrencies weighed heavily on prices throughout the week. Reports of forthcoming moves by the U.S. Securities and Exchange Commission (SEC) against prominent players in the crypto sphere, coupled with the closure of a prominent privacy coin trading platform, contributed to the apprehensive sentiment among investors.
As of 01:24 ET (05:24 GMT), Bitcoin traded up 2% over the past 24 hours, reaching $62,745.3. The overnight dip in the dollar, spurred by lackluster labor data, provided some support to Bitcoin’s price.
Additionally, sustained outflows from crypto investment products, notably spot Bitcoin exchange-traded funds (ETFs), exerted downward pressure on the token over the preceding three weeks.
Over the last seven days, Bitcoin largely remained unchanged, maintaining a steady trading range established since its descent from record highs in early March. Last week, the token dipped as low as $57k, marking its entry into a technical bear market from its March peaks.
While Bitcoin managed to rebound from these lows, further upward momentum was hindered by concerns surrounding heightened regulatory scrutiny on the crypto sector. The closure of LocalMonero, a widely used platform for peer-to-peer Monero trades, contributed to the overall apprehension.
The SEC‘s postponement of the public listing of crypto wallet operator Exodus Movement on the New York Stock Exchange added to the regulatory uncertainty. Similarly, trading app Robinhood Markets Inc (NASDAQ:HOOD) disclosed potential regulatory action from the SEC regarding crypto tokens traded on its platform.
The SEC’s decision to delay the verdict on spot Ethereum ETFs until June, with anticipated rejection thereafter due to an ongoing investigation into the token’s security status, added to the regulatory pressures. Similar cases against exchanges Coinbase Global Inc (NASDAQ:COIN) and XRP issuer Ripple further intensified market unease.
In broader crypto markets, muted price movements were observed, with anticipation surrounding key inflation data from the U.S. limiting significant trades. Ethereum experienced a modest 0.8% increase, while XRP declined by 0.7%, both tokens seeing weekly losses.
Solana emerged as a standout performer, recording over a 5% increase on Friday and maintaining mild weekly gains.
While tepid jobless claims data fostered optimism regarding potential Federal Reserve interest rate cuts, such measures are anticipated no earlier than September, exerting near-term pressure on crypto markets.
