Bitcoin prices surged on Friday, driven by broader gains in risk-sensitive markets after positive U.S. labor data eased concerns about an impending recession. This rally was mirrored by gains across various altcoins.
The leading cryptocurrency rose nearly 7%, reaching $60,916.2 after touching an intraday high of $61,712.3. Bitcoin’s strong performance this week marked a recovery from a sharp decline on Monday, when it briefly fell to $49,000 amid a broader market sell-off. The cryptocurrency also appeared set for moderate weekly gains, following a more than 10% drop in the previous week.
Market Recovery Bolsters Bitcoin as Recession and Rate Hike Fears Subside
Bitcoin’s rebound aligned with a broader market rally, particularly in equities, following better-than-expected U.S. jobless claims data. This data alleviated fears of an imminent economic slowdown, which had previously weighed heavily on risk-driven assets.
Earlier in the week, recession concerns had intensified due to a significant drop in nonfarm payrolls, causing a broad market retreat. However, a more cautious stance from the Bank of Japan (BOJ) also helped improve market sentiment. After raising interest rates last week and signaling more hikes to come, BOJ officials reassured investors this week, stating that they would avoid rate hikes during periods of market volatility. This, along with losses in the Japanese yen, further signaled a revival in risk appetite.
Crypto Market Update: XRP Slips After SEC Fine; Altcoins Rally
In the broader cryptocurrency market, XRP prices cooled after a sharp rally in the previous session. The decline followed Ripple Labs’ agreement to pay a $125 million fine in a protracted legal battle with the U.S. Securities and Exchange Commission (SEC). Although the fine was significantly less than the $2 billion initially sought by the SEC, the ruling included an injunction requiring Ripple to register any future security sales. The case left unresolved the ongoing debate over whether cryptocurrencies qualify as securities. The SEC is also expected to potentially appeal a previous ruling that XRP sales to retail investors did not constitute security sales.
Despite the XRP setback, other altcoins saw substantial gains alongside Bitcoin. Ether, the second-largest cryptocurrency, jumped 10.6% to $2,681.80. Meanwhile, SOL and ADA increased by 1.5% and 3.6%, respectively. Among meme coins, DOGE rose 4.7%.
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