Bitcoin prices held steady on Friday, reflecting a cautious sentiment among traders towards cryptocurrency markets despite a decline in the U.S. dollar following soft labor data. This data reinforced expectations of possible interest rate cuts later in the year, yet traders remained reserved in their approach to crypto assets.
One of the predominant factors pressuring cryptocurrency prices throughout the week was the anticipation of further regulatory actions against the crypto sector. Reports suggesting impending crackdowns by the U.S. Securities and Exchange Commission (SEC) on major players in the crypto space, combined with the closure of a prominent privacy coin trading platform, added to market anxieties.
Despite these headwinds, Bitcoin managed to maintain a 2% increase over the past 24 hours, reaching $62,745.3 by 01:24 ET (05:24 GMT), partially supported by the dollar’s overnight weakness.
However, sustained outflows from crypto investment products, particularly spot Bitcoin exchange-traded funds (ETFs), continued to exert downward pressure on the token over the past three weeks.
Over the last seven days, Bitcoin’s performance has remained relatively flat, with the cryptocurrency trading within a range established since its decline from record highs in early March. Last week, Bitcoin fell as low as $57,000, entering a technical bear market from its March peaks.
While Bitcoin has recovered from those lows, further upward momentum has been hindered by concerns surrounding increased regulatory scrutiny. The closure of LocalMonero, a popular platform for peer-to-peer trades of the Monero privacy coin, further contributed to the negative sentiment.
Recent regulatory actions, including the SEC’s postponement of the public listing of crypto wallet operator Exodus Movement and potential regulatory scrutiny facing trading app Robinhood Markets Inc., have also contributed to market unease. Additionally, the SEC’s decision to delay a ruling on spot Ethereum ETFs until June, along with ongoing investigations into Ethereum and other tokens, have added to regulatory uncertainties.
In the broader crypto market, altcoins experienced limited movements, with Ethereum rising 0.8% and XRP falling 0.7%. Solana emerged as an outperformer, gaining over 5% on Friday and maintaining mild weekly gains.
While weak jobless claims data fueled optimism about potential interest rate cuts by the Federal Reserve, the central bank is not expected to take action until September, which could continue to weigh on crypto markets in the near term.