Bitcoin‘s price showed little movement on Friday as market participants awaited further guidance on U.S. interest rates from Federal Reserve Chair Jerome Powell.
The cryptocurrency faced headwinds from a broader risk-off sentiment in financial markets and ongoing apprehensions regarding potential token distributions from the now-defunct Mt. Gox exchange.
As of 01:56 ET (05:56 GMT), Bitcoin inched up 0.2% to $60,846.80. The market was also unsettled by a significant appreciation in the Japanese yen following remarks from Bank of Japan Governor Kazuo Ueda about potential further interest rate hikes. This yen strength had earlier triggered a unwinding of carry trades in August, negatively impacting risk-driven assets like Bitcoin, which had previously dipped as low as $49,000.
Bitcoin’s performance this week has been lackluster, marked by brief spikes above $60,000 amid ongoing fears related to Mt. Gox. The exchange, which began returning stolen tokens to clients in July, saw wallets associated with it mobilizing nearly $3 billion worth of tokens this week, heightening concerns of a potential mass sell-off due to increased token supply.
The broader risk-off mood also influenced financial markets, with Wall Street indexes closing lower on Thursday. Investors are cautiously awaiting Powell’s address at the Jackson Hole Symposium, where he is anticipated to provide further insights on interest rates and economic conditions. Traders are generally expecting a rate cut in September, but opinions are divided on whether the reduction will be 25 or 50 basis points, as noted by CME Fedwatch.
The argument for a deeper cut gained traction after weak labor market data earlier in the week, though concerns remain that a deteriorating labor market could negatively impact economic growth.
In the wider cryptocurrency market, prices experienced a modest rise on Friday but are expected to deliver a mixed weekly performance. Ethereum, the second-largest cryptocurrency, increased by 1.8% to $2,674.99, while altcoins such as SOL, ADA, and MATIC saw gains between 0.9% and 2.1%. XRP, however, declined by 0.1%. Among memecoins, DOGE rose by 1.2%.
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