Bitcoin and other cryptocurrencies saw little change on Friday, pausing near the peak of a recent rally. With prices reaching 20-month highs, all eyes are now on the upcoming release of the U.S. jobs report, which could potentially impact crypto markets.
Bitcoin Price Retreats but Still Strong
Over the past 24 hours, the price of Bitcoin declined by 1% to $43,250. This setback comes after Bitcoin reached a recent peak above $44,000, which was the highest level seen since April 2022. Despite the dip, Bitcoin has gained about two-thirds of its value since mid-October, signaling a shift from a subdued trading period and prompting speculation about a new bull market.
According to Rachel Lin, the CEO of trading platform SynFutures, this week’s performance has been the strongest since late October when Bitcoin surpassed $30,000. Lin also dismisses the notion that the current rally is merely a bear market rally, emphasizing the significant gains made.
Factors Contributing to Bitcoin’s Rise
Multiple factors have contributed to Bitcoin’s upward trajectory. Optimism abounds regarding the potential approval of the first spot Bitcoin exchange-traded fund (ETF) by U.S. regulators. Such approval would likely spark renewed interest from investors in the crypto market. Additionally, expectations of multiple interest rate cuts by the Federal Reserve next year have contributed to a positive macroeconomic outlook. Furthermore, the scarcity of token supply and limited sellers in the market have driven prices higher.
U.S. Jobs Report and Crypto Market
Similar to how the U.S. jobs report impacts traditional stock markets like the Dow Jones Industrial Average and S&P 500, Bitcoin may react to this economic indicator as well. The November jobs report is scheduled for release at 8:30 a.m. Eastern and is expected to influence rate expectations in advance of the Federal Reserve’s upcoming monetary policy meeting.
Other Cryptocurrencies Show Strength
In addition to Bitcoin, other cryptocurrencies are also continuing their rally. Ether, the second-largest token, has gained 4.5% and is now valued at $2,350. Meanwhile, smaller altcoins are also on the rise, with Cardano climbing 9% and Polygon experiencing a 4% increase. Memecoins, however, have seen more modest gains, with Dogecoin up by 1% and Shiba Inu increasing by 4%.