Bitcoin and other cryptocurrencies fell on Friday, with prices under pressure from stress in the digital asset industry as well as losses in broader markets. The US jobs report due on Friday is a key catalyst that could drive further declines.
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Bitcoin
and other cryptocurrencies fell on Friday, with prices under pressure from stress in the digital asset industry as well as losses in broader markets. The US jobs report due on Friday is a key catalyst that could drive further declines.
The price of Bitcoin has fallen 8% in the past 24 hours to $19,825, with the largest crypto falling to its lowest levels since mid-January. Bitcoin’s big rally to start 2023 — which saw it climb above $25,000 from $16,500 in a matter of weeks, spurring talks of a new bull market — looks vulnerable to giving back its gains.
“There have been nothing but negative headlines for Bitcoin and crypto this week,” said Yuya Hasegawa, an analyst at broker Oanda. “There is little reason to buy Bitcoin now that the market is saturated with negative developments, not only specifically for the crypto industry, but also for the broader financial market as well.”
The latest catalyst driving crypto down has been losses across the stock market, with which Bitcoin is heavily correlated. The
Dow Jones Industrial Average
and
S&P 500
plunged on Thursday and was poised for more declines on Friday after massive losses at SVB Financial (ticker: SIVB) spurred a wave of selling across bank stocks that beat broader sentiment.
It has the potential to be even more volatile, with the February jobs report due at 8:30 am ET. Amid concerns over higher interest rates – which have weighed on cryptos and stocks alike in recent days – the key labor market indicator is likely to be a deciding factor in the Federal Reserve’s next interest rate move later this month. Warmer-than-expected data could bolster bets that the Fed will step up to a 50 basis point rate hike on March 22 and could see further selling.
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Beyond Bitcoin,
Ether
—the second largest crypto lost 9% to $1,390. Less cryptos ot altcoins were unspared, med
Cardano
crumbling 4.5% and
Polygon
withdraws 8%. Memecoins were even deeper in the red, with
Dogecoin
down 11% and
Shiba Inu
drop 10%.
Write to Jack Denton at [email protected]
