On Friday, the price of Bitcoin remained unchanged as traders continued to exhibit caution towards crypto markets, despite a decline in the U.S. dollar following soft labor data, reinforcing expectations of potential interest rate cuts later this year.
This week, concerns about increased regulatory measures against cryptocurrencies weighed heavily on prices, with reports indicating further actions by the U.S. Securities and Exchange Commission (SEC) against major players in the crypto space. Additionally, the closure of a prominent privacy coin trading platform contributed to a sense of unease among investors.
As of 01:24 ET (05:24 GMT), Bitcoin traded up 2% over the past 24 hours, stabilizing at $62,745.3. The overnight weakening of the dollar following the release of lackluster labor data provided some support to Bitcoin.
Over the past three weeks, sustained outflows from crypto investment products, particularly spot Bitcoin exchange-traded funds, have exerted downward pressure on the token.
Bitcoin Price Remains Stable Over the Past Week
The world’s largest cryptocurrency experienced minimal movement over the past seven days, maintaining a comfortable position within a trading range established since its decline from record highs in early March.
Although Bitcoin had rebounded from last week’s lows of $57k, further upward momentum was hindered by concerns regarding heightened regulatory scrutiny on crypto assets.
The closure of LocalMonero, a widely used platform for peer-to-peer trades involving the Monero privacy coin, negatively impacted market sentiment.
The SEC’s decision to postpone the planned public listing of crypto wallet operator Exodus Movement on the New York Stock Exchange also contributed to uncertainties in the crypto space. Similarly, trading app Robinhood Markets Inc (NASDAQ:HOOD) disclosed potential regulatory action from the SEC related to crypto tokens traded on its platform.
Anticipation Surrounds U.S. Inflation Data
In broader crypto markets, trading activity remained subdued as investors awaited further clues on U.S. interest rates, particularly from upcoming key inflation data scheduled for release next week.
While Ethereum recorded a modest 0.8% increase, XRP saw a slight decline of 0.7% for the week. Solana emerged as an outperformer, rising over 5% on Friday and maintaining mild weekly gains.
Although weak jobless claims data sparked optimism regarding potential interest rate cuts by the Federal Reserve, market expectations suggest such actions may not materialize until September, which could continue to exert pressure on crypto markets in the short term.