Bitcoin price rose on Friday, partially recovering losses from the previous period thanks to a weakening dollar. However, the outlook for the largest cryptocurrency remains uncertain due to the expected persistence of high interest rates in the United States.
Bitcoin added 3.7% over the past 24 hours, climbing to $59,529.4 (as of 01:07 ET). However, it is still struggling with the aftermath of the March plunge, when it lost more than 20% from its record high.
The weakening dollar provided Bitcoin and other cryptocurrencies with short-term relief, but overall they are heading for weekly losses. Bitcoin is down 6.2% this week as investors remain cautious about the cryptocurrency market in the face of high US interest rates.
A similar trend was seen with Bitcoin exchange-traded funds (ETFs). These have now seen three straight declines, signaling a waning of the initial enthusiasm from their approval in March, which at the time helped push Bitcoin to record highs.
Crypto traders are now eagerly awaiting the release of US nonfarm payroll data, which could influence the future direction of interest rates. Persistent strength in the US labor market would give the Federal Reserve (Fed) room to keep rates high for a longer period.
The Fed this week signaled that it has no plans to cut rates anytime soon, especially given the ongoing inflationary pressures in the US. High interest rates, however, are putting a damper on crypto markets, as they thrive in an environment of low interest rates and high liquidity.
Key takeaways:
- Bitcoin price: $59,529.4 (up 3.7% in 24 hours)
- Bitcoin’s weekly loss: 6.2%
- Ethereum’s 24-hour gain: 2.6%
- Solana’s 24-hour gain: 8%
- XRP’s 24-hour gain: 1.7%
- Expected release: US nonfarm payroll data
- Key factor: High US interest rates are dampening crypto markets.
