Bitcoin prices saw a slight increase on Friday, stabilizing close to record highs. This rise is attributed to support from a weaker dollar and increasing speculation on U.S. interest rate cuts ahead of crucial nonfarm payrolls data.
In the past 24 hours, Bitcoin gained 0.6%, reaching $71,327.6 by 01:55 ET (05:55 GMT). The cryptocurrency is poised to end the week with a more than 5% gain, having broken out of a $60,000 to $70,000 trading range that has persisted since mid-March.
Rate Cut Bets Mount Ahead of Nonfarm Payrolls Data
Bitcoin and broader crypto markets were buoyed by growing expectations that the Federal Reserve will begin cutting interest rates by September. A series of weak U.S. economic indicators have reinforced this view, with traders betting that a cooling economy will give the Fed the confidence to loosen monetary policy. This week’s decline in the dollar further benefited risk-driven assets.
The key nonfarm payrolls data, expected later on Friday, is anticipated to provide more definitive signals regarding the labor market and interest rates. Looser monetary conditions typically favor speculative assets like cryptocurrencies by freeing up capital for investment in these high-risk sectors.
Bitcoin’s recent trading levels are less than $3,000 below its all-time high, spurred by institutional capital flows into exchange-traded funds (ETFs) linked to the cryptocurrency. The hype surrounding the approval of spot Bitcoin ETFs for U.S. markets has been a significant driver of the cryptocurrency’s surge to record highs earlier this year.
Analysts suggest that the prospect of lower interest rates could ignite another record high rally for Bitcoin in the near term.
Crypto Market Update: Altcoins Hold Steady, Await Rate Cues
In the broader crypto markets, major altcoins remained within tight trading ranges on Friday, as investors awaited further cues on U.S. interest rates. Most tokens are on track for modest weekly gains amid expectations of lower rates and continued optimism over a spot Ether ETF.
Ether, the second-largest cryptocurrency, fell 0.8% to $3,814.40, trading flat for the week. Other major altcoins, including XRP, SOL, and ADA, held steady and were up between 1% and 3% for the week.
Among memecoins, SHIB and DOGE saw slight declines, despite some resurgence in meme trading following a sharp rise in major meme stock GME.
In summary, Bitcoin’s steady rise and the broader crypto market’s cautious optimism reflect the growing anticipation of U.S. interest rate cuts and their potential impact on speculative assets.
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