Investing.com– Bitcoin price rose on Friday, taking some relief from a sharp drop in the dollar, although the outlook for the cryptocurrency remained bleak in the face of high for longer U.S. interest rates.
Traders also remained largely averse towards cryptocurrencies ahead of key nonfarm payrolls data on Friday, which is likely to factor into the outlook for interest rates.
rose 3.7% in the past 24 hours to $59,529.4 by 01:07 ET (05:07 GMT). The world’s largest cryptocurrency remained close to bear market territory after tumbling over 20% from a record high hit in March.
Dollar drop offers some relief to Bitcoin, but weekly losses on tap
A sharp overnight drop in the gave Bitcoin and other cryptocurrencies some breathing room, although they were still headed for losses this week.
Bitcoin was trading down 6.2% for this week, with traders remaining averse towards crypto in the face of high-for-longer U.S. interest rates.
This was also seen with Bitcoin investment products, specifically spot exchange-traded funds, clocking three straight weeks of declines. While approval of the ETFs had driven Bitcoin prices to record highs in March, enthusiasm over the approval now appeared to be running dry.
This also kept Bitcoin trading between $60,000 to $70,000 for over a month, although it broke below that trading range this week.
Crypto price today: Altcoins advance ahead of nonfarm payrolls
Most altcoins tracked gains in Bitcoin, recovering a measure of losses seen earlier this week.
But gains were limited by anticipation of key U.S. data, which is likely to factor into the outlook for interest rates.
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World no.2 token rose 2.6% to $2,999.45, while and added 8% and 1.7%, respectively.
All three altcoins were trading in a flat-to-low range for the week. The prospect of high U.S. interest rates bodes poorly for crypto markets, given that their speculative nature sees them thrive in a low-rate, high-liquidity environment.
data due later on Friday is expected to show persistent strength in the U.S. labor market- a scenario that gives the Fed more headroom to keep rates high for longer.
The central bank had warned earlier this week that it had no immediate plans to reduce rates, especially amid recent signs of sticky U.S. inflation.