Bitcoin slipped modestly on Friday and stayed trapped in a relatively tight trading range as investors prepared for U.S. nonfarm payrolls data that could feed into interest-rate expectations.
By 02:21 ET (06:21 GMT), the world’s largest cryptocurrency was down 0.7% at $64,404.2. The token was positioned to finish the week about 2.5% higher, yet trading activity remained largely confined to a $62,000 to $65,000 range.
Market participants also scaled back some optimism about reports of a potential Iranian deal to reopen the Strait of Hormuz, after no agreement appeared to be reached despite U.S. assertions that a deal was close. The fading hope for a diplomatic resolution added pressure to crypto markets on the day.
Nonfarm payrolls in focus for rate cues
Traders adopted a rangebound stance as they awaited U.S. nonfarm payrolls data scheduled for later in the day. Forecasts for the print called for a mild uptick in job growth compared with the prior month, although overall job growth was still expected to remain weak.
Employment readings carry weight for expectations around U.S. interest rates because jobs and inflation are central inputs for the Federal Reserve when considering policy moves. The Fed’s most recent meeting showed policymakers growing increasingly concerned about persistent inflation. Any sign that the labor market is more resilient than expected would likely strengthen the argument for additional rate hikes, although the central bank’s plans remained unclear after limited guidance from Fed Chair Kevin Warsh.
Higher interest rates are generally unfavorable for speculative assets such as cryptocurrencies, a factor that contributed to the cautious tone in markets heading into the payrolls release.
MARA Q2 results disappoint investors
MARA Holdings (NASDAQ:MARA), among the largest Bitcoin miners in the U.S., released second-quarter results on Thursday that fell short of expectations, reflecting pressure from prolonged lower Bitcoin prices.
The company reported a Q2 loss per share of $1.60 versus expectations for a $0.350 profit, and revenue of $174.9 million also missed forecasts. The quarter represented Mara’s third consecutive quarterly loss. Facing margin pressure from the extended Bitcoin downturn, the company reiterated plans to shift further into supplying computing resources to the artificial intelligence industry. Investors reacted negatively, sending the stock down by more than 5% on Thursday.
Altcoins post mixed moves
Broader crypto prices largely declined on Friday and produced a mixed performance over the week. Ether fell 0.4% on the day but was up 3.3% for the week, outpacing other major tokens. XRP fell 2.4% and was down more than 3% on the week. Solana slipped 1.6% and finished the week essentially flat, while Cardano led with a 15% surge for the week. BNB lost 1.4% on Friday. Among memecoins, Dogecoin fell 1%, while $TRUMP gained 1.3%.
Summary
Bitcoin traded slightly lower and remained rangebound ahead of U.S. payrolls data that could influence interest-rate expectations. A perceived setback on an Iranian deal to reopen the Strait of Hormuz reduced upside momentum. Miner Mara reported disappointing second-quarter results and announced continued plans to move into AI-focused computing resources, while altcoins showed mixed weekly performances.
Key points
- Bitcoin was down 0.7% at $64,404.2 by 02:21 ET (06:21 GMT) and is trading in a $62,000 to $65,000 range.
- MARA Holdings reported a Q2 loss per share of $1.60 versus an expected $0.350 profit, with revenue of $174.9 million; this marked the company’s third straight quarterly loss and the stock fell over 5%.
- U.S. nonfarm payrolls are expected to show a mild uptick in job growth but overall growth is projected to remain weak; these data are likely to influence Fed policy expectations.
Risks and uncertainties
- Employment data could surprise on the upside, supporting a case for further interest-rate hikes and adding pressure to speculative assets such as cryptocurrencies - impact on rates and speculative asset markets.
- Geopolitical developments remain uncertain: no deal had been reached to reopen the Strait of Hormuz despite U.S. statements that a deal was close, removing a potential tailwind for markets - impact on energy and risk sentiment.
- Operational and market pressures for crypto miners remain significant, as evidenced by Mara’s continued quarterly losses and revenue shortfall - impact on mining firms and related equities.
Disclosure
This article is for informational purposes only and does not constitute investment advice.