TL; DR
-
Fears of further rate hikes caused BTC to sell off on Friday, from ~$72k to ~$68.4k, before bouncing back to ~$69.3k (where it remained for most of the weekend).
Full story
This will sound strange, but…
Crypto prices fell on Friday as the economy did at healthy.
This is what we mean:
The Federal Reserve is looking for weakness in the economy – enough weakness that it can cut rates without causing more inflation.
Because if they lower interest rates, loan and credit repayments become a little cheaper for everyone, allowing us to spend more money.
…but consumers who have more money to play with typically encourage companies to raise prices (which the Fed is trying to combat).
So they’re hoping to see signs of a weakening economy, which will allow them to lower interest rates enough so we can all make ends meet. without everyone is busy spending money.
If these signs do not materialize, the Fed will likely keep rates high for longer (and possibly even raise them again).
So when it turned out that unemployment rates had risen last Friday, it was a good sign in the eyes of the Fed. Unfortunately, job growth rose to offset much of that, raising fears of further rate hikes.
As a result, Bitcoin (and the rest of the crypto market) sold off, with BTC going from ~$72k to ~$68.4k within hours, before bouncing back up to ~$69.3k and staying there for most of the time kept hanging. weekend.
Okay, now you know!
