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Bitcoin Hits $100K, Then Slips
Bitcoin briefly soared past the $100,000 mark on Friday morning before dipping back down. As of now, it’s trading at $98,320, up 1% in the past 24 hours, according to CoinGecko.
- Bitcoin hit a record high before dropping below $100K.
- The crypto market reacted to the latest U.S. jobs report.
- Ethereum and XRP also surged before cooling off.
Ethereum, XRP, and the Crypto Market’s Moves
Like Bitcoin, Ethereum (ETH) and XRP saw brief spikes before settling lower.
- Ethereum (ETH): Currently at $2,751.
- XRP: Up 7% in the past day, now priced at $2.47, though still down 19% this week.
- Crypto Market Cap: Down 1% in the past 24 hours, now at $3.35 trillion.
What’s Going on With the U.S. Economy?
The latest U.S. jobs report painted a mixed picture:
- Unemployment Rate: Dropped from 4.1% to 4%.
- Job Growth: Slowed, indicating economic uncertainty.
- Wage Growth: Remains strong, meaning people are likely to keep spending.
- Federal Reserve Impact: Since inflation is still a concern, the Fed is less likely to cut interest rates soon.
How Interest Rates Affect Crypto
Crypto prices tend to perform better when interest rates are low.*
- The Fed lowered rates three times in 2024 after aggressive hikes in 2022.
- Lower rates make borrowing cheaper, leading to more investment in assets like crypto and stocks.
- Market volatility suggests traders are unsure about the Fed’s next move.
More Reasons for Bitcoin’s Volatility
Bitcoin’s price swings aren’t just about interest rates. Other big factors include:
- Trump’s Tariff Plans: Initially threatened tariffs on Mexico and Canada but later backed off. Tariffs on China, however, went into effect this week.
- AI Stock Selloff: A dip in AI-related stocks spilled over into crypto, adding to the market’s instability.
