Bitcoin Holds Steady at $112K, XRP and SOL Remain Stable as Rate Cut Sentiment Persists Ahead of Jobs Report
Bitcoin steadied near $111,600 on Friday, revealing significant resilience even as global risk assets faced downward pressure. Ether (ETH) edged down 0.7% to $4,330, while Solana (SOL) increased by 1.3%, trading above $204. XRP remained flat, lingering around $2.81, but showed a 3.5% upswing over the past week.
What to Know:
- Bitcoin’s dominance stands robust at 60% of the crypto market, helping to provide stability amidst the volatility of altcoins.
- The market’s performance is significantly impacted by recent U.S. labor data and evolving expectations regarding the Federal Reserve’s rate cuts.
The backdrop for the week has been characterized by anticipation surrounding the jobs report, expected to reveal rising unemployment and bolstering predictions of a rate cut this September. However, traders are beginning to anticipate a more restrained rate lowering cycle for the remainder of the year.
Insights from Experts:
“While unemployment numbers imply potential rate cuts in mid-September, traders now suggest reductions may be limited,” stated Jeff Mei, COO at BTSE. “The Fed is cautious about introducing excessive new capital due to inflation concerns, impacting both stocks and cryptocurrencies.”
Gold has reached a new peak, trading above $3,500 an ounce, emphasizing a heightened demand for secure assets, closely aligning in narrative with Bitcoin.
“Bitcoin has evolved beyond merely a speculative tool; it’s widely seen as a secure value and a hedge against inflationary pressures,” pointed out Vikrant Sharma, CEO of Cake Wallet, in a recent discussion. “While volatility persists, it is logical for such a relatively young asset, just over a decade old.”
Despite some headwinds, Bitcoin’s solid position has catalyzed a sense of stability in market sentiment, especially as Bitcoin retains nearly 60% of total cryptocurrency market capitalization.
“Despite encountering volatility, Bitcoin has shown impressive resilience, dipping just 3% while upholding its dominance,” said Nassar Achkar, Chief Strategy Officer at CoinW, in an email.
As the market navigates uncertainties, the mixed outlook suggests a period of caution as we welcome the historically weak month of September for cryptocurrencies.
