Bitcoin and other cryptocurrencies were largely up early on Friday, regaining some ground lost during the week. They were rising alongside other risk assets, with market attention on the U.S. jobs report and its implications for the Federal Reserve’s monetary policy.
Bitcoin
was up 0.9% over the previous 24 hours to $27,119. The largest cryptocurrency briefly dropped well below $27,000 overnight before regaining its footing, but remains within the relatively tight band established in May after falling back from the level of above $30,000.
“During the past few weeks, digital assets have been treading water. The total market capitalization of the asset class has been hovering around $1.2 trillion as regulatory developments in the United States continued to dominate the headlines,” wrote Carsten Menke, of Swiss bank Julius Baer, in a research note.
The next catalyst is likely to be the Fed’s June rate decision. Inflation-fighting rate hikes have been a drag on crypto, hitting risk assets. Traders are largely pricing in a pause in rate increases at the June meeting.
“[The macro environment seems to be improving with the resolution of the debt ceiling issue and the possibility for a rate hike pause, but Bitcoin is still not out of the woods yet as Friday’s U.S. jobs report could reignite a sense of caution for another rate hike,” said Yuya Hasegawa, an analyst at Japanese crypto exchange Bitbank.
Beyond Bitcoin, Ether—the second-largest crypto—was up 1.6% to $1,886. Smaller cryptos, or altcoins, were also climbing, with Cardano up 2.1% and Polygon rising 1.4%.
Dogecoin
gained 0.8%.
Write to Adam Clark at [email protected]
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