Bitcoin’s price remained steady around $108,000, while Ethereum traded near $3,750, as traders adopted a cautious approach ahead of the U.S. employment report. Recent commentary from Treasury Secretary Scott Bessent highlighted growing concerns about high interest rates impacting the economy, which has intensified discussions about potential rate cuts.
Crypto Market Overview
The cryptocurrency market experienced a dip over the weekend, with Bitcoin declining approximately 1.7% and Ethereum falling about 3.5%. This trend reflects a broader downturn in major cryptocurrencies as alt-coins underperformed.
- Bitcoin Price: Approximately $108,000
- Ethereum Price: Approximately $3,750
- Bitcoin’s 24-hour Change: Down 1.7%
- Ethereum’s 24-hour Change: Down 3.5%
Bessent’s Economic Insights
Bessent’s remarks during a CNN interview suggested that the Federal Reserve’s tight monetary policy might have contributed to a recession in certain sectors, particularly housing. He indicated that remaining at high borrowing costs could intensify economic strain, particularly among leveraged households.
The initial reaction to Bessent’s comments led to a small strengthening in crypto prices, based on the notion that they might support future easing of rates. However, this optimism quickly faded as traders considered the potential for increased volatility rather than a clear market recovery.
Market Trends and Indicators
With U.S. markets poised to reopen on Monday, investors are anticipating the employment report scheduled for release on Friday at 8:30 a.m. ET. Analysts expect to see hiring slow while unemployment rates remain steady, a crucial data set that could influence future interest rate decisions.
Bitcoin Price Dynamics
Current on-chain data indicates that Bitcoin is struggling to surpass a critical cost basis level of $113,000, a figure that analysts believe separates bullish trends from corrections. For the past three weeks, this threshold has resisted upward movement after a six-month period above it, signaling weakening demand.
According to analysts at Glassnode, if Bitcoin were to maintain a drop below this level, it could trigger a more significant downturn, with key support anticipated at around $88,000. This support level correlates with the realized cost basis of the actively circulating supply, marking past periods of market corrections.
