Crypto Market Softens Ahead of U.S. Jobs Data
Cryptocurrencies edged lower on Sunday as traders positioned ahead of the upcoming U.S. jobs report and digested remarks from Treasury Secretary Scott Bessent suggesting that elevated interest rates are beginning to strain segments of the economy.
Bitcoin traded near $108,000, down about 1.7% over 24 hours, while Ethereum slipped roughly 3.5% to $3,750, according to CoinGecko. Altcoins underperformed, reflecting a defensive stance among investors.
“The Federal Reserve’s restrictive policy may have driven parts of the economy, particularly housing, into recession,” Bessent told CNN. He added that the central bank now has room to cut rates and cautioned that keeping borrowing costs high could deepen economic pressure, especially for leveraged households.
Mixed Market Reaction to Rate Outlook
Crypto initially strengthened on the prospect that Bessent’s comments could support easing measures. However, gains faded as traders debated whether rate cuts prompted by slowing economic activity might increase short-term volatility rather than provide a clean liquidity boost.
With U.S. markets reopening Monday, attention is on Friday’s employment report, expected at 8:30 a.m. ET. Economists anticipate moderate hiring growth with unemployment remaining near recent levels. The data could clarify whether rate cuts reflect confidence in a soft landing or growing concern over economic weakness.
Bitcoin Technical Levels Under Pressure
On-chain metrics indicate softening momentum. Bitcoin has struggled to reclaim the short-term holders’ cost basis near $113,000, a level analysts see as a key threshold between bullish and corrective phases.
“A sustained break lower raises the risk of a deeper pullback, with the next significant support near $88,000,” Glassnode analysts noted.
The realized cost basis of actively circulating Bitcoin supply has historically marked corrective phases in prior cycles, highlighting fading demand at current levels.
