The price of bitcoin increased on Friday, regaining some of the losses it had suffered recently. However, the ongoing uncertainty surrounding U.S. interest rates essentially prevented the price increase from happening.
In the last 24 hours, Bitcoin increased 3.3%, reaching $67,615.0 by 01:09 ET (05:09 GMT). As the public's appetite for risk worsened earlier in the week, the token dropped as low as $64,000. The danger of higher-for-longer U.S. interest rates, the escalating geopolitical unrest in the Middle East, and the Taiwan earthquake all contributed to the traders' overall tilt for safe haven assets like the dollar.
On Friday, the dollar appreciated while gold prices held close to the all-time highs reached earlier in the week. A number of hawkish remarks made by Federal Reserve officials also reduced risk appetite. They cautioned that sticky inflation will prevent the Fed from reducing interest rates too soon.
Weekly losses in bitcoin prices are expected as nonfarm payrolls get closer
The biggest cryptocurrency in the world was headed for a weekly loss after trading down roughly 3% over the previous five days.
After reaching all-time highs of more than $73,000 in March, Bitcoin has struggled inside a narrow trading range. The U.S. stock market and other significant risk-driven assets saw difficulties during this slump, which coincided with a sluggish start to the second quarter.
Both the amount of money entering and the volume of trading in the freshly authorized Bitcoin exchange-traded funds have been observed to have decreased in recent weeks. Although the adoption of the ETF was a major factor in the rise of Bitcoin earlier in the year, it now seemed that this trend was losing momentum.
The focus shifted to nonfarm payrolls data, which is anticipated to impact U.S. interest rate forecast later on Friday. Higher-for-longer rates are not good news for Bitcoin, as the cryptocurrency often does well in low-rate, high-liquidity markets.
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