Bitcoin price surged on Friday in line with positive movements in broader risk-driven markets, fueled by encouraging U.S. labor market data that alleviated concerns about an impending recession. Altcoin prices also experienced a rally.
Bitcoin rose by almost 7% to $60,916.2, although it slightly retreated from its peak of $61,712.3. The cryptocurrency was on track for modest weekly gains following a more than 10% drop in the previous week.
The world’s largest cryptocurrency managed to recover a significant portion of its losses this week, bouncing back from a low of $49,000 on Monday during a general market downturn.
Bitcoin Price Increase Linked to Recession and Rate Hike Relief
The surge in Bitcoin price mirrored a broader market rally, particularly in equities, as better-than-expected weekly data eased concerns about an imminent economic slowdown in the U.S.
Fears of a recession had negatively impacted risk-driven assets over the past week, exacerbated by data indicating a sharp decline in . Furthermore, less hawkish remarks from Bank of Japan officials, who stated that the bank would refrain from raising rates during market volatility, contributed to an improvement in risk sentiment. The weakening Japanese yen also signaled a recovery in risk appetite.
Crypto Market Today: XRP Rally Subsides Following SEC Fine, Altcoins See Uptrend
Despite a sharp rally in the previous session, XRP’s price fell after the issuer, Ripple Labs, was fined $125 million in an ongoing lawsuit with the Securities and Exchange Commission. While the fine was considerably lower than the $2 billion initially sought by the SEC, Ripple was also issued an injunction to register any future security sales. The regulatory status of crypto tokens as securities remains uncertain, with the SEC potentially appealing a previous ruling that deemed Ripple’s XRP sales to retail investors as non-security sales.
Aside from XRP, other altcoins surged alongside Bitcoin. Ethereum rose by 10.6% to $2,681.80, while Litecoin and Dogecoin saw increases of 1.5% and 3.6%, respectively. Among meme tokens, Shiba Inu added 4.7%.
Analysis: The article discusses the recent surge in Bitcoin price driven by positive movements in the U.S. labor market that alleviated concerns about a potential recession. The broader market rally, including in equities, contributed to the cryptocurrency’s recovery from previous losses. Additionally, XRP’s price decline following the SEC fine and the subsequent rally in altcoins were highlighted. Overall, investors should consider the impact of macroeconomic factors and regulatory developments on cryptocurrency prices when making investment decisions.