Investing.com– Bitcoin retreated on Friday after a short-lived rally past the coveted $100,000 level, as anticipation of more cues on U.S. interest rates spurred some profit-taking.
The world’s biggest cryptocurrency surged to record highs on Thursday amid increased optimism over friendlier crypto regulations under incoming President Donald Trump. Traders were particularly cheered by Trump’s pick of a pro-crypto candidate to lead the Securities and Exchange Commission.
fell around 4% to $98,690.0 by 08:58 ET (13:58 GMT). The coin had fallen as low as $91,000 after hitting a record high of $103,719.4.
Broader crypto moves tracked Bitcoin’s pullback.
Trump picks David Sacks as White House AI and crypto czar
Continuing his trend of crypto-friendly cabinet picks, Trump on Thursday said venture capitalist David Sacks will take up a newly created role to advise the White House on crypto and artificial intelligence regulation.
This follows the creation of a crypto advisory council, while Trump’s picks for the Treasury Secretary and Secretary of Commerce were also seen in support of deregulation and digital assets.
Earlier this week, Trump nominated former SEC Commissioner Paul Atkins to lead the agency. Atkins is also pro-crypto, and is expected to end, or at least taper the SEC’s two-year regulatory crusade against crypto.
November nonfarm payrolls data tops estimates
The U.S. labor market showed a strong rebound in November following weaker performance in October, which was likely influenced by hurricane disruptions in the southeast.
Nonfarm payrolls increased by 227,000 last month, surpassing the expected gain of 200,000, as reported by the Bureau of Labor Statistics. October’s initially reported increase of 12,000 jobs was revised upward to 36,000.
The unemployment rate for November came in at 4.2%, aligning with market expectations and slightly higher than October’s 4.1%.
These employment figures, released Friday morning, are among the final major economic indicators the Federal Reserve will evaluate before its December 17-18 meeting. Just a month ago, expectations were high that the central bank would proceed with another reduction in its benchmark interest rate. However, robust economic data, persistent inflation signals, and cautious remarks from Fed officials have prompted a slight shift in sentiment.
Ahead of the jobs report, CME FedWatch data indicated a 70% probability of a 25 basis point rate cut in December, down from 80% a month earlier. Following the latest employment data, the odds of a 25 basis point cut rose to 88%.
Bitcoin dominance could wane under friendlier regulations- Citi
Citi analysts warned in a recent note that while they did see positive regulatory and macroeconomic trends for crypto, Bitcoin’s dominance of crypto markets could taper off with the industry gaining more regulatory clarity.
Citi said that regulatory clarity could open the door for more crypto use cases, enabling other, smaller coins and tokens with actual use cases. They noted that Bitcoin was already treated as a commodity, limiting its usage.
“Over the long-term, we think a network’s utility or value will be related to usage, as well as macro correlations and production costs,” Citi analysts said, while noting that such a scenario would benefit Bitcoin less than other cryptos. The brokerage also joined several of its peers in downplaying Bitcoin’s prospect as a reserve asset.
Crypto price today: altcoins track Bitcoin losses, set for a strong week
Most broader crypto prices moved in a tight range on Friday, seeing some pressure from losses in Bitcoin. But they were set to outpace Bitcoin for the week.
World no.2 crypto slid 0.7% to $3,893.22 and was trading up nearly 8% over the past seven days.
– which was the biggest beneficiary of speculation over the next SEC head, lost roughly 3%, but was sitting on a 7-day gain of over 36%- its fifth straight week of outsized gains.
XRP hit a six-year high on speculation that the SEC will drop its long-running lawsuit against issuer .
, and fell between 2% and 5%. Among meme tokens, tumbled more than 5%.
Ambar Warrick contributed to this report.
