Bitcoin Faces Weekly Loss Amid U.S. Interest Rate Uncertainty

Bitcoin Price Fluctuations

Bitcoin's price faced a dip, reflecting ongoing uncertainties in the financial market, particularly regarding U.S. interest rates. The cryptocurrency fell 0.69% to $67,587.1 after experiencing a low of $64,000 earlier in the week. This decline was influenced by several factors, including geopolitical tensions in the Middle East, an earthquake in Taiwan, and persistent hawkish stances from Federal Reserve officials.

Impact of U.S. Economic Indicators

The broader economic landscape showed a strong U.S. employment sector, with nonfarm payrolls surpassing expectations by adding 303,000 jobs, compared to the anticipated 200,000. This unexpected growth suggests that interest rates may remain elevated, which could adversely affect Bitcoin, as it tends to perform better in low interest rate environments.

Cryptocurrency Market Trends

Bitcoin's weekly performance continued to flounder, down approximately 3% over the past five days. Despite earlier gains spurred by Bitcoin exchange-traded funds, capital inflows into these funds have slowed, mirroring a downturn in trading activity. The cryptocurrency had previously peaked at over $73,000 in March but has since been constrained by a weakening U.S. stock market and other risk-driven assets.

Ethereum and XRP Movements

Ethereum's price dropped by 2.6% as the SEC deliberated on spot ETFs for the cryptocurrency. Concurrently, XRP experienced a 0.7% decline, facing legal challenges with the SEC's case against Ripple.

Crypto Derivatives and Market Share

March saw a record high in crypto derivatives trading, reaching $6.18 trillion in volume, yet the market share of derivatives decreased to 67.8%, the lowest since December 2022. This shift was due to a significant rise in spot market activity, where immediate cryptocurrency exchanges surged by 108% to $2.94 trillion, marking a substantial increase in trading volumes across the board.