Bitcoin is currently trading near $107,400, down around 3% over the past 24 hours, while Ethereum has dropped roughly 4% to around $3,750, according to CoinMarketCap. The decline has extended to most major altcoins, reflecting a broader cooling in market sentiment.
Investor caution intensified after U.S. Treasury Secretary Scott Bessent suggested in a recent interview that the Federal Reserve’s prolonged tight monetary policy may have already pushed certain sectors, especially housing, into recession. Bessent believes the Fed now has room to ease interest rates but warned that delaying could worsen financial challenges for debt-laden consumers.
Crypto markets initially reacted positively to the prospect of rate cuts, but enthusiasm waned as traders weighed concerns that easing driven by economic slowdown might result in short-term instability rather than an immediate bullish reversal.
The focus now shifts to the U.S. jobs report set for release on Friday morning. Analysts are predicting slower job growth but stable unemployment figures, data that could offer crucial clues about whether the Fed will make a preemptive adjustment or respond to worsening economic signals.
On-chain analytics suggest weakening momentum. Bitcoin has struggled to regain its footing above the $113,000 mark identified by Glassnode as the cost basis for short-term holders, which often separates bullish breakouts from trend corrections. After months of staying above this level, its recent role as resistance indicates reduced buyer interest around current prices.
Glassnode noted that failure to reclaim this level could open the door to a deeper pullback, with the next major support zone around $88,000 aligned with correction patterns seen in prior cycles.
For now, investors appear to be in wait-and-see mode, looking to upcoming macroeconomic data and Fed guidance before making any significant moves back into digital assets.
