The cryptocurrency market slipped into the red over the weekend, as traders trimmed risk ahead of a closely watched U.S. employment report and digested fresh warnings about the toll of high interest rates on the economy. Bitcoin hovers near $107,400, easing roughly 3% in 24 hours, while Ethereum lost more ground, falling about 4% to around $3,750, according to CoinMarketCap. Most major altcoins followed the same trend, signaling a broad pullback in sentiment across the market.
Investor caution grew after U.S. Treasury Secretary Scott Bessent said in a televised interview that the Federal Reserve’s extended period of tight monetary policy may have already pushed parts of the economy – especially housing – into recession. He argued that the Fed now has room to begin lowering rates but warned that delaying action could deepen financial stress for heavily indebted consumers. Crypto prices initially ticked higher after Bessent’s remarks, as traders welcomed the prospect of potential rate cuts. But optimism faded quickly amid concerns that easing driven by economic weakness could create more volatility in the short term rather than fuel a clear rebound.
All eyes are now on the upcoming U.S. jobs report, scheduled for release on Friday morning. Economists are expecting a slowdown in hiring but steady unemployment levels, data that could clarify whether the Fed’s next move would be a proactive adjustment or a reaction to worsening conditions. On-chain indicators are also hinting at fading momentum. Bitcoin has been unable to climb back above the $113,000 level, which analysts at Glassnode identify as the cost basis for short-term holders – a technical threshold separating bullish recoveries from corrective trends. The level has acted as a ceiling for nearly a month after half a year of trading above it, suggesting weakening demand around current prices. Glassnode warned that if Bitcoin fails to hold, the next meaningful support zone could lie near $88,000 – a level consistent with prior correction phases. For now, traders appear to be sitting on their hands, awaiting confirmation from macroeconomic data and the Fed’s next signals before committing to any renewed momentum in digital assets.