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Bitcoin prices hovered just above $111,000 mark early Monday, well off their record high of about $124,000, despite increased bets of a rate cut by the Federal Reserve.
The price of the apex cryptocurrency slipped 0.3% to $111,707 by 4:30 a.m. ET, Ethereum dipped over 3% to $4,296, while XRP fared better, rising 2.5% over the past 24 hours to $2.91.
Last week, the U.S. Bureau of Labor Statistics stated that the U.S. economy only added 22,000 jobs in August, below the consensus estimate of a 75,000 rise. Unemployment rate also rose to 4.3%, the highest level in nearly four years.
The tepid jobs report bolstered optimism around at least a 25-basis-point cut, with some even projecting a 50-basis-point reduction. Global equities gained on Monday while gold prices hit the $3,600 mark for the first time.
However, investor reaction to cryptocurrencies was not at the same level. Corporate crypto holdings have already surpassed 1 million coins, and data indicate that the growth may be slowing down.
“Retail is buying, institutions are trimming, and ETFs are taking a nap,” Rachel Lucas, crypto analyst at BTC Markets, noted. "Weak U.S. employment data raises expectations for the Fed's easing stance, but the market already seems to have priced this in to some extent.”
However, she added that if bitcoin clears the $113,000 mark, it could climb up to $115,400 and maybe even $117,100. Retail sentiment on Stocktwits about Bitcoin and XRP was in the ‘bearish’ territory, while traders were ‘extremely bearish’ about Ethereum.
“Bitcoin breaking through $112K would be a massive trigger for the entire market,” analyst Michael Van De Poppe said.
Political uncertainty in France and Japan is also weighing on investor confidence. However, Asian firms have shown an increased appetite for cryptocurrencies.
Hong Kong-based HashKey Group said it will launch its inaugural digital asset treasury, with an initial target size of $500 million. A growing number of companies are adding cryptocurrencies to their balance sheet to emulate the successes of U.S. software firm Strategy, the top holder of Bitcoin.
So far this year, both Bitcoin and Ethereum have notched gains of more than 20%, outperforming the benchmark S&P 500 and Nasdaq indices, as well as the ETFs that track them.
Also See: Gold Prices Notch Another Record High As Weak US Jobs Data Boosts Rate-Cut Hopes
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