Bitcoin experienced a slight drop in value on Friday as traders displayed caution leading up to the release of the U.S. jobs report for September. The report is expected to have an impact on bond prices and the overall market.
At $27,623, Bitcoin witnessed a 0.1% decrease over the last 24 hours. Despite a stock-market selloff caused by rising bond yields, the largest cryptocurrency has managed to hold its ground.
According to Joel Kruger, a market strategist at LMAX Group, “Bitcoin’s properties make it quite attractive as an alternative flight to safety play, especially against other cryptocurrencies viewed to be more correlated to risk sentiment.”
The role of Bitcoin as a risk asset or safe haven asset is likely to be tested with the release of the September jobs report. Market participants are eagerly awaiting this report as it may shed light on whether the Federal Reserve is nearing the end of its rate-hiking cycle. Economists surveyed by The Wall Street Journal have estimated that employers added 170,000 jobs in September, slightly lower than the 187,000 jobs added the previous month.
Yuya Hasegawa, an analyst at crypto exchange Bitbank, stated, “Bitcoin’s breakout… could be dependent on the results of Friday’s jobs report. A successful breakout would trigger strong buy signals for Bitcoin, and the price could test $30,000.”
While Bitcoin took a slight dip, other cryptocurrencies displayed divergent trends. Ether, the second-largest cryptocurrency, experienced a 0.3% decline, settling at $1,634. On the other hand, smaller cryptocurrencies known as altcoins saw gains, with Cardano rising by 2.5% and Solana increasing by 1.3%. Memecoins also experienced a rise, with Dogecoin gaining 0.1%.