June 7 2024: Bitcoin’s price saw a modest rise on Friday, stabilizing near record highs due to a weaker dollar and increased speculation about U.S. interest rate cuts ahead of significant nonfarm payrolls data. By 01:55 ET (05:55 GMT), Bitcoin was up 0.6% in the past 24 hours, reaching $71,327.6. The cryptocurrency was on track to gain over 5% for the week after breaking out of a $60,000 to $70,000 trading range established since mid-March.
Rate Cut Bets Mount Ahead of Nonfarm Payroll Data
The anticipation of potential rate cuts by the Federal Reserve, spurred by a series of weak U.S. economic indicators, has bolstered Bitcoin and other cryptocurrencies. Traders are betting that a cooling U.S. economy will prompt the Fed to loosen monetary policy. This week’s dollar decline has also benefited risk-driven assets like cryptocurrencies.
The upcoming nonfarm payrolls data, expected later on Friday, is anticipated to provide more concrete insights into the labor market and future interest rate decisions. Looser monetary conditions generally favor speculative assets like cryptocurrencies, as they release more capital that can be directed toward such investments.
Institutional Capital Flows and ETF Hype
Bitcoin was trading just under $3,000 below its record high, driven by expectations of lower interest rates, which have sparked significant institutional capital flows into exchange-traded funds (ETFs) linked to the cryptocurrency. Earlier this year, the hype over the approval of spot Bitcoin ETFs in the U.S. markets was a major factor behind Bitcoin’s run to record highs. Analysts believe that the prospect of lower rates could trigger another rally to new record highs for Bitcoin in the near term.
Crypto Market Overview: Altcoins and Memetokens
In broader cryptocurrency markets, major altcoins also remained within a narrow trading range on Friday, awaiting further cues on U.S. interest rates. Most tokens were set for some weekly gains amid expectations of lower rates and continued optimism over a potential spot Ether ETF.
Ether, the world’s second-largest cryptocurrency, fell 0.8% to $3,814.40, trading flat for the week. Altcoins such as XRP, SOL, and ADA held steady, showing weekly gains between 1% and 3%.
Memetokens like SHIB and DOGE experienced slight declines, showing little benefit from the resurgence in meme trading after a sharp rise in GameStop (GME) shares earlier this week.
