Investing.com — Bitcoin prices rose on Friday, taking some relief from the dollar's plunge, but the outlook for the cryptocurrency remained bleak on the back of high long-term interest rates in the United States.
Traders also remain averse to cryptocurrencies ahead of Friday's release of key non-farm payrolls numbers, which is likely to be factored into the interest rate outlook.
It rose 3.7% in the past 24 hours to $59,529.4 by 01:07 ET (05:07 GMT). The world's largest cryptocurrency remains close to bear market territory after falling more than 20% from its record high in March.
Dollar drop brings some relief to Bitcoin, but weekly losses on tap
Although still headed for a decline this week, a sharp overnight drop gave Bitcoin and other cryptocurrencies some breathing room.
Bitcoin fell 6.2% this week, with traders remaining hesitant about the cryptocurrency due to prolonged U.S. interest rates.
This was also seen in Bitcoin investment products, particularly spot ETFs, which declined for the third consecutive week. While the ETF approval sent Bitcoin prices to a record high in March, enthusiasm for the approval now appears to have dried up.
Bitcoin also fell below that range this week after trading between $60,000 and $70,000 for more than a month.
Cryptocurrency prices today: Altcoins rise ahead of non-farm payrolls
Most altcoins have followed Bitcoin's rise, recovering some of the losses seen earlier this week.
However, the rise was limited by expectations for major US indexes, which are likely to be factored into interest rate outlooks.
remove ads
.
The world's second-largest token rose 2.6% to $2,999.45, while and were up 8% and 1.7%, respectively.
All three altcoins traded in a flat to low range this week. The prospect of high interest rates in the U.S. bodes poorly for the crypto market, given its speculative nature that allows it to thrive in an environment of low interest rates and high liquidity.
Economic data released later Friday is expected to show continued strength in the U.S. labor market, a scenario that gives the Fed more room to keep interest rates high for an extended period of time. .
The central bank warned earlier this week that it had no immediate plans to cut interest rates, especially amid recent signs that U.S. inflation has stalled.
